A

PROJECT REPORT
ON
COMMODITY MARKETS
AT
CD EQUISEARCH PVT LTD
A Project Report Submitted In Partial Fulfillment Of The
Requirements For The Award Of The Degree Of
MASTER OF BUSINESS ADMINISTRATION

JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY

SUBMITTED BY

P.VINAYAKA REDDY
(H.T. NO: 12L01E0027)

Under the Esteemed Guidance of

Mr.M. DORASWAMY NAIK M.COM, M.B.A, (Ph.D)

Assoc. Professor, Dept of MBA

DEPARTMENT OF MANAGEMENT STUDIES

TRR COLLEGE OF ENGINEERING
(APPROVED BY AICTE & AFFILIATED TO JNTUH)
Inole (V), Patancheru (M), Medak (Dist), HYDERABAD
(2012-2014)

TRR COLLEGE OF ENGINEERING

(Approved by AICTE, Recognized by Govt. of A.P and Affiliated to JNTUH, Hyderabad)
Inole (V), Patancheru (M), Medak (Dist)

DEPARTMENT OF MANAGEMENT STUDIES

CERTIFICATE
This is to certify that the Project Report titled COMMODITY MARKETS
submitted in partial fulfillment for the award of MBA Programme of Department
of Business Management, TRR COLLEGE OF ENGINEERING, Patancheru,
Affiliated to JNTU, Hyderabad, was carried out by P.VINAYAKA REDDY
bearing Roll No.: (12LO1E0027), under my guidance. This has not been submitted
to any other University or Institution for the award of any degree / diploma
certificate.

EXTERNAL EXAMINER

INTERNAL GUIDE AND HOD

Mr. M. DORASWAMY NAIK
M. Com, MBA, (Ph. D)
Associated Professor, Dept of MBA

DECLARATION
I hereby declare that this Project Report titled COMMODITY
MARKETS at CD EQUISEARCH PVT LTD submitted by me as part of
partial fulfillment for the Award of the Masters of Business Administration, at TRR
COLLEGE OF ENGINEERING, JNTU, Hyderabad, is a bonafide work
undertaken by me.
I also declare that this report has to my knowledge is my own and is neither
submitted to any other University nor published any time before.

Date:
Place:

(P.VINAYAKA REDDY)
(12L01E0027)

ACKNOWLEDGEMENT
The satisfaction that accompanies the successful completion of any task would be
incomplete without mentioning of the people who made it possible and whose
encouragement and guidance has been the source of inspiration throughout the
course of the project.
I take this opportunity to express my sense of gratitude for the consistent guidance
and the support given by Mr. K.R.SHARMA, Manager, CD EQUISEARCH PVT
LTD, who assisted me by providing all the necessary information regarding the
organization.
My profound thanks to Principal, Dr. K.SRINIVASA RAO GARU, TRR
COLLEGE OF ENGINEERING, Patancheru, Medak District, for extending his
consultancy, support and guidance in executing my project.
I also wish to thank my HOD and internal Guide Mr. M. DORASWAMY NAIK
GARU for providing me the opportunity to do a project that builds-up my career.
I am very grateful and thankful to all the Teaching Staff, Librarian, all the staff
members of CD EQUISEARCH PVT LTD, SOMAJIGUDA, Hyderabad, for their
co-operation in completing my Project work.

P.VINAYAKA REDDY

EXECUTIVE SUMMARY
Commodity markets are the basic necessities of everybody but due to the modern
technology, globalization, and liberalization, commodity markets can go across the world
with regards to commodity trading. Commodity markets are maturing day by day in todays
market. Commodity market is an important constituent of the financial markets of any country.
Commodities are amongst the oldest market of the world. Commodities can be classified into
gold, silver, nickel, zinc, copper and so on. There are so many commodities emerging at a very
quick pace.
Investing in commodities is a very good option, but there are many risks involved in it as
involved in any investment. In order to avoid such risks the investor should carefully examine
the market before investing anything. The investor should keep regular check of the market as
the market fluctuates anytime so he should be careful about it as, if he losses concentration he
can incur a big lose. So investing in commodities is risky but useful. There are many
commodities for investing but the most likely ones are Gold, Silver, soybeans castor oil and so
on.
The future of commodities is very bright. Demand is increasing rapidly. Demand for a
wide variety of commodities covering food, fiber, metals and energy is certain to expand.
Competition from imports is increasing, Whether or not domestic producers like it, the
competition from imported commodities is inevitable. Competition is now driving smaller
players to explore opportunities for merger. There are risks involved because of the increasing
demand and pressure from the importers so the investors should invest by emerging with an
experienced broker who has every idea about the market happenings.

TABLE OF CONTENTS:
Contents
List of Tables
List of Figures
Chapter-I
Introduction
Objectives
Need for the Study
Research Methodology
a) Primary Data
b) Secondary Data
Scope of the Study
Limitations
Chapter-II
Industry Profile & Company Profile
Chapter-III
Review & Literature
Chapter-IV
Data Analysis and Interpretation
Chapter-V
Findings and Suggestions
Chapter-VI
Conclusions
Bibliography

Page numbers
i
ii
1-2
3
4
5
6
7
8-35
36-47
48-64
65-66
67

LIST OF TABLES:
SI.No
1
2
3
4

Table

Page

Monthly Variation in Potato Prices (Jan.2000-June.2004)

India in World Gold Industry
Frequency Distribution of Copper Spot Prices at LME
Calculation of Beta and Volatility of Gold Futures

numbers
14
23
28
48

5
6
7
8
19
10
11
12

Calculation of Beta and Volatility of Aluminum Futures

Calculation of Beta and Volatility of Copper Futures
Calculation of Beta and Volatility of Crude Oil Futures
Calculation of Beta and Volatility of Chilli Futures
Calculation of Beta and Volatility of Potato Futures
Calculation of Beta and Volatility of Soya bean Futures
Calculation of Beta and Volatility of Natural Gas Futures
List of Beta value for 9 Commodities

50
52
54
56
58
60
62
64

LIST OF GRAPHS:
SI.No

Figures

Page numbers

Graph of Gold Future

49

Graph of Aluminum

51

Graph of Copper

53

Graph of Crude Oil

55

Graph of Chilli Futures

57

Graph of Potato Futures

59

Graph of Soya Bean

61

Graph of Natural Gas

63

Graph of Beta Value for 9 Commodities

64

ii