ABSTRACT

Commodity markets can also be called commodity exchanges, and this is simply an exchange where commodities are bought and sold for future delivery. The first commodity markets traded in agricultural products alone, but the modern markets trade much more than this, including gold, silver, oil, and others, for a total of 96 different commodities that are traded. A commodity market is an exchange for commodity traders where products that are graded and standardized are purchased and sold. Most of the trading done on these markets consist of futures contracts, which are agreements between two entities that the goods will be delivered at a specific time in the future for a price that is agreed upon at the current time. This trading allows both speculation and hedging. Hedging can help a trader hedge against severe losses if the market declines. Speculation allows the trader to gain if the market increases.

OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVES:  To understand the workings of the commodities market.  To know how much people preferred to invest in the commodities market. SECONDARY OBJECTIVES:  To know reasons beyond the investors investing in the commodities market  To assess the investment opportunity in sample selected.

SCOPE OF THE STUDY

It is the study entitled working of the Commodities market and Investors preferences towards it in the Anand Rathi Securities Ltd, Hyderabad Branch. The firm is entirely client centric, with a clear focus on providing long term value addition to clients, while maintaining the highest standards of excellence, ethics and professionalism. The entire firm activities are divided across distinct client groups: Individuals, Private Clients, Corporates and Institutions.

The scopes of the study are:  Analysis of activities of the commodities market  Analysis of survey and this survey is limited to only Hyderabad city.  Analysis of questionnaire and suggestions for improvement.

LIMITATIONS OF THE STUDY

 All commodities investors were not easily available for conducting the survey.  Some of them were not ready to fill the questionnaire.  The scope of the survey is limited to Hyderabad city only.  Detailed study of the topic was not possible due to limited size of the project.  There was a constraint with regard to time allocation for the research study i.e. for a period of 45 days.