Name :-Harvinder singh Roll no:-12944

COMPANY PROFILE
ABOUT KARVY GROUP
Karvy has traveled the success route, towards building a

reputation as an integrated financial services provider, offering a wide spectrum of services for over 20 years. Karvy, a name long committed to service at its best. A fame acquired through the range of corporate and retail services including mutual funds, fixed income, equity investments, insurance to name a few. The values and vision of attaining total competence in servicing has served as a building block for creating a great financial enterprise.

Cont
The birth of Karvy was on a modest scale in the year 1982. It

began with the vision and enterprise of a small group of practicing Chartered Accountants based in Hyderabad, who founded Karvy. They started Karvy with consulting and financial accounting automation, and then carved inroads into the field of Registry and Share Transfers. Since then, they have utilized their quality experience and superlative expertise to go from strength to strength to provide better and new services to the investors. And today, they can look with pride at the fruits of our experience into comprehensive financial services provider in the Country.

Introduction
Ever since the first national level commodity exchange was

introduced in 2003, commodity exchanges have seen an exponential growth. In the last fiscal, that is, 2012-13 the total turnover of the Indian commodity markets was approximately Rs.170.46 trillion Currently, there are five national commodity exchanges and several regional exchanges in India. The growth in trading volumes has been primarily propelled by Multi Commodity Exchange (MCX) and National Commodity Exchange (NCDEX).These two exchanges account for a large share of the total number of contracts traded on all the exchanges in India.The main commodities that contributed for the tremendous growth of the market are non-agriculture commodities, out of which bullions (gold and silver) lead the Indian Commodity Market

KARVY Group companies are:

Karvy Consultants Limited
Karvy Stock Broking Limited Karvy Investor Services Limited

Karvy Computershare Private Limited

Karvy Global Services Limited Karvy Comtrade Limited Karvy Insurance Broking Private Limited Karvy Mutual Fund Services Karvy Securities Limited

KARVY COMTRADE LIMITED

An ISO 9001:2003 certified company, Karvy Comtrade

Limited (KCTL) is Indias leading commodities brokerage house. They have membership of Multi Commodity Exchange of India (mcx), National Commodity and Derivatives Exchange (ncdex), National Multi-commodity Exchange of India (nmce), National Spot Exchange (nsel), NCDEX spot exchange (nspot), Ace commodity exchange (ace) and Indian commodity exchange (icex).
Using a superior trading platform, they facilitate futures

trading in commodities as per the exchanges. KCTL offers both trading and exclusive research services to its clients. A subsidiary of Karvy Stock Broking Limited (KSBL), KCTL commenced operations in early 2005.

THE KCTL ADVANTAGE

Seamless, online trading platform
Reliable, award-winning research Personalized services

Cutting-edge technological expertise

CORPORATE DESK of kCTL

The KCTL corporate desk has been helping corporate

clients to adopt comprehensive strategies to manage their price and exchange risk volatility. The desk strives to develop customized risk-mitigation solutions and strategies, tailored to protect company profits from excessive volatility, particularly in these uncertain times. KCTL endeavor to provide client with consistent, realistic data-based analysis and recommendations.

The corporate desk approach

Discover: identify the need and relevant commodity

exposure Design: devise a strategy according to the purchase cycle of the company Develop: formulate a strategy Demonstrate: pilot-test the strategy Deploy: put it in action, corresponding to the purchase cycle Control and review: review and modify strategies according to market movements

INTRODUCTION TO COMMODITY MARKETS

Ever since the drawn of civilization, commodity trading has become an

integral part of mankind. The first and foremost reason is that commodity represents the fundamental elements of lifestyle of human beings. In the early days, people used to exchange goods for goods, which was called as Barter System. With the advancement of civilization, trading system has gone through various changes and has now entered into an era of Future trading besides existence physical trading across the world. The history of Commodity Future trading can be traced back to 1688 with the introduction of Future trading in rice in Japan. This was followed by an increased participation in commodity derivatives, especially in Futures, in the industrialized countries like America and Britain. All the countries opened the avenue for introduction of Future trading in commodities in 19th century. Major commodity Future trading platforms opened in the world are Chicago Board of Trade (NYBOT) and New York Mercantile Exchange (NYMEX).

INDIAN COMMODITY EXCHANGES

There are 22 recognized commodity futures exchanges in India under

the purview of the Forward Markets Commission (FMC). The country's commodity futures exchanges are divided majorly into two categories: National Exchanges Regional Exchanges The five exchanges operating at the national level (as on 1st January 2010) are: National Commodity and Derivatives Exchange Multi Commodity Exchange National Multi Commodity Exchange Indian Commodity Exchange Ahmedabad Commodity Exchange The leading regional exchange is the National Board of Trade (NBOT) located at Indore. There are more than 15 regional commodity exchanges in India

FEATURES OF NATIONAL AND REGIONAL EXCHANGES

NATIONAL EXCHANGES Compulsory online trading Transparent trading Multi commodity exchange Large expanding volumes Exchange recognized on permanent basis Exchanges to be de-mutualized REGIONAL EXCHANGES On line trading not compulsory De-mutualization not mandatory Recognition given for fixed period after which it could be given for reregulation Generally, these are single commodity exchanges. Exchanges have to apply for tradingeach commodity. Low volumes in niche markets

OBJECTIVES OF THE STUDY

To study about the commodity derivative market and the

mechanism behind the trading of commodities To get a better understanding of the Indian Commodity Market Study of National Commodity Exchanges in India and commodities traded within Growth Estimates based upon the turnover in the National Exchanges( 2003-2013) Evaluating the reasons that lead to the growth in the commodity market Yearly development in the commodity market Growth Projection for future years(2014,2015) using technical analysis

RESEARCH METHODOLOGY
The methodology that I have adopted to do this study is as

follows: The data which provides the information about commodity market is taken from secondary sources. The date regarding the annual turnovers from 2003-2013 of major national exchanges is taken from the market data published in respective exchanges website. The Japanese candlestick charts which gives the monthly average prices of various commodities are screenshot from trading platforms of international exchanges. To project the growth of commodity market, GDP estimations of major nations and Price projection of important commodities is done.

GROWTH OF COMMODITY MARKET FROM LAST DECADE (2003-13)

The growth in commodity market is calculated by

taking four important national exchanges turnover from 2003-2013. The exchanges taken for calculation of growth are NCDEX, NMCE, MCX and ACE. The following table shows the financial year wise turnover of national commodity exchanges from 2003-2013

Turnover of National Commodity Exchanges

years
NCDEX NMCE MCX ACE s) Turnover(lkh

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

148305 26621213 109065664 116431172 77195367 53382878 91758384 141060224 181021013 159842597

4737266.36 2815284.36 3678934.19 22366716.5 4971691.43 12291515.7 45580302.4 43682187.5 53670195.3 35307300.1

231279.18 16621288.8 95188849.1 229372358.8 312595912.4 458809397.2 639330183.7 984148039.1 1559709547 1488105712

5116850.54 46057786.16 207933447.3 368170247.3 394762970.9 524483790.9 776668870.1

2965959.20 13834601.7 17153835.3

1171856410 1808235357 1700409444

Growth of Commodity Market from last decade

200 180 160 140

GROWTH OF COMMODITY MARKET

Turnover in trillion

120 100

80
60 40 20 0

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

 The graph and the calculated values reveal that there is

increase in turnover value from 0.5117 trillion in financial year of 2003-04 to 180.82 trillion in financial year of 2011-12 and in financial year 2012-13 the turnover came down to 170.04 trillion. However the rate at which the commodity market is growing has been declined from financial year of 2003-04 to financial year of 200708. Again from the year 2008-09 the growth rate has taken positive path, but in financial year 2012-13 there is a slight decrease in growth rate of market at 5.96%.

Growth rate of Commodity Market YEAR

TOTAL TURNOVER(lakhs)

GROWTH RATE (%)

2003-04
2004-05 2005-06

5116850.54
46057786.16 207933447.3 800.12% 351.46%

2006-07
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

368170247.3
394762970.9 524483790.9 776668870.1 1171856410 1808235357 1700409444

77.06%
7.22% 32.86% 48.08% 50.88% 54.31% -5.96%