Professional Documents
Culture Documents
There are several national as well as local players in stock trading services which are providing
various services to their customers like online trading, portfolio management system, stock
broking etc. Various key players in this sector are:
KEY PLAYERS1:
COMPANY PROFILE:
SSKI HISTORY:
Sevaklal Sevantilal Kantilal Ishwarlal
Securities Private Limited.
• Founded in 1922, it is one of India’s oldest brokerage houses having over Eighty years of
broking experience.
• Founding member of the Stock Exchange, Mumbai and pioneer institutional broker.
• SSKI is the only domestic player in a market crowded by 44 multinational securities firm.
• Foray into institutional broking and corporate finance 20 years ago. SSKI group also
comprises Institutional broking division caters to the largest domestic and foreign
institutional investors, the corporate finance division focuses on niche areas such as
infrastructure, telecom and media. SSKI holds a sizeable portion of the market in each of
these segments.
• Forerunner of investment research in the Indian market, SSKI provide the best research
coverage amongst broking houses in India. The company’s research team was set up in
December 1992 and is rated as one of the best in the country. Voted four times as the top
domestic brokerage house by Asia money survey, SSKI is consistently ranked amongst the
top domestic brokerage houses in India.
• Retail broking started in 1985.
• Research group was set up in December 1992.
• It acts as a pioneer if investment research in the Indian market aimed at generating quick
investment ideas.
• Group interest Investment Banking, Institutional Broking and Retail Broking.It occupies 65%
of business share from foreign institutional investors.
• SSKI named its online division as “Sharekhan” on February 8, 2000 coinciding with the
launch of its website.
Sharekhan is a share broking and retail broking arm of SSKI, an organization with more than 80
years of trust and credibility in the stock market. Retail Distribution Started In 1998. SSKI is a veteran
equities solutions company with over 8 decades of experience in the Indian stock markets. It helps the
customers/people to make informed decisions and simplifies investing in stocks. SSKI named its online
division as a Sharekhan and it is into retail broking. The business of the company overhauled 6 years
ago on February 8, 2000. It acts as a discount brokerage house to a full service investment solution
provider. It has specialized research product for the small investors and day traders. Sharekhan has a
shop in 170 cities across India.
They have talent pool of experienced professionals specially designated to guide customers when they
need assistance, which is why investigating with Sharekhan is bound to be a hassle-free
experience for customers!
The Sharekhan provides its customers First Step program, built specifically for new investors, which
guide throughout investing lifecycle.
They have 510 share shops across 170 cities in India to get a host of trading related services.
ABOUT SHAREKHAN
• SSKI named its online division as SHAREKHAN and it is into retail broking.
• It acts as a discount brokerage house to a full service investment solutions provider.
• It has specialized research product for the small investors and day traders.
• The site was also launched on February 8, 2000 and named it as www.sharekhan.com
• The Speed Trade account of Sharekhan is the next generation technology product launched
on April 17, 2002.
• It offers its customers with the trade execution facilities on the NSE and BSE, for cash as
well as derivatives, depository services.
• Ensures convenience in Trading Experience: Sharekhan’s trading services are designed to
offer an easy, hassle free trading experience, whether trading is done daily or occasionally.
The customer will be entitled to a host of value added services in the investment process
depending on his investing style and frequency offers a suite of products and services,
providing the customers with a multi-channel access to the stock markets.
• It gives advice based on extensive research to its customers and provides them with relevant
and updated information to help him make informed about his investment decisions.
• Sharekhan offers its customers the convenience of a broker-DP.
• It helps the customers meet his pay in obligations on time thereby reducing the possibility of
auctions. The company believes in flexibility and therefore allows accepting late instructions
without any extra charge. And execute the instruction immediately on receiving it and
thereafter the customer can view his updated account statement on Internet.
• Sharekhan depository services offer Demat services to individual and corporate investors. It
has a team of professionals and the latest technological expertise dedicated exclusively to
their Demat department. A customer can avail of Demat, repurchase and transmission
facilities at any of the Sharekhan branches and business partners outlets.
BRAND NAME
The company as a whole in its offline business has named itself as SSKI Securities Private
Limited – Sevaklal Sevantilal Kantilal Ishwarlal Securities Private Limited. The company has
preferred to name themselves under a blanket family name.
But in its online division started since 1997, the company preferred to name itself as
“SHAREKHAN”. The Brand name “SHAREKHAN” itself suggests the business in which the
company is dealing so that the customer could easily identify the product or service category.
• Online Services
• Offline Services
• Depository Services
• Equity and Derivatives Trading
• Fundamental Research
• Technical Research
• Portfolio Management
• Commodities Trading
• Dial-n-trade
• Share shops
1. Online Services:
1. Mutual Funds
2. Commodity Futures
3. PMS (Portfolio Management Service)
4. Technical PMS
5. Demat Services
6. Share shops
1. Offline Services:
Types of Account
• Classic A/c
• Speed-trade
[A] Classic A/c:
Features of Classic A/c:
• Online trading account for investing in Equities and Derivatives via sharekhan.com
• Integration of: Online trading + Bank + Demat account.
• Instant cash transfer facility against purchase & sale of shares.
• Make IPO bookings.
• You get Instant order and trade confirmations by e-mail
• Streaming Quotes.
• Personalized Market Scan with your own customized stock ticker.
• Single screen interface for cash and derivatives.
[B] Speed-trade:
Features of Speed-trade:
• Market summary (most traded scrip, highest value and lots of other relevant statistics)
[C] Dial-n-trade:
Features of Dial-n-trade:
• Two numbers for placing orders for customers: Toll free number: 1-800-22-7050. For
people with difficulty in accessing the toll-free number, a Reliance number 30307600
which is charged at Rs. 1.50 per minute for STD calls.Automatic funds transfer with phone
banking (for Citibank and HDFC bank customers.
• Simple and Secure Interactive Voice Response based system for authentication.
• No waiting time. Enter TPIN to be transferred to Sharekhan’s telebrokers.
• One can also get the trusted, professional advice of Sharekhan’s telebrokers.
• After hours order placement facility between 8.00 am and 9.30 am (timings to be extended
soon.
BANK AFFILIATION
Sharekhan has affiliation with 7 banks, which allows its customers to enjoy the facility of instant
credit and transfer of funds from his savings bank account to his Sharekhan trading account. The
Affiliated banks are as follows:
• HDFC BANK
• UTI BANK
• CITI BANK
• ORIENTAL BANK OF COMMERCE
• IDBI BANK
• UBI BANK
• CORPORATION BA
Promotion
Online share trading is totally a new concept in Indian market. Generally investor doesn’t like to
come from conventional way of share trading. Sharekhan has introduced this product in the
concept and products are still new in the market. Therefore the company has undertaken
extensive promotion campaign to create awareness about the product. Sharekhan adopts the
following tools for promoting the product.
• Internet
• Tele Marketing
• Retail Share Shops
• Franchisee Owners
• Sales Force
Advertising
Company advertises its product through TV media on channels like CNBC, Print Media-in
leading dailies and outdoors media. It advertises itself as an innovative brand with a cartoon of
tiger-called SHERU. Besides attractive and colorful brochures as well as posters are used giving
full details about the product. Mails are sent to people togging on to sites like moneycontrol.com
and rediff.com.
Commodity
A commodity is some good for which there is demand, but which is supplied without qualitative
differentiation across a market. It is fungible, i.e. the same no matter who produces it. Examples
are petroleum, notebook paper, milk or copper.[1] The price of copper is universal, and fluctuates
daily based on global supply and demand. Stereo systems, on the other hand, have many aspects
of product differentiation, such as the brand, the user interface, the perceived quality etc. And,
the more valuable a stereo is perceived to be, the more it will cost.
In contrast, one of the characteristics of a commodity good is that its price is determined as a
function of its market as a whole. Well-established physical commodities have actively traded
spot and derivative markets. Generally, these are basic resources and agricultural products such
as iron ore, crude oil, coal, ethanol, salt, sugar, coffee beans, soybeans, aluminum, copper, rice,
wheat, gold, silver, palladium, and platinum. Soft commodities are goods that are grown, while
hard commodities are the ones that are extracted through mining.
Definition of comodity
A physical substance, such as food, grains, and metals, which is interchangeable with another
product of the same type, and which investors buy or sell, usually through futures contracts. The
price of the commodity is subject to supply and demand. Risk is actually the reason exchange
trading of the basic agricultural products began. For example, a farmer risks the cost of
producing a product ready for market at sometime in the future because he doesn't know what the
selling price will be.
http://www.investorwords.com/975/commodity.html
History of commodity market
The modern commodity markets have their roots in the trading of agricultural products. While
wheat and corn, cattle and pigs, were widely traded using standard instruments in the 19th
century in the United States, other basic foodstuffs such as soybeans were only added quite
recently in most markets.[ For a commodity market to be established, there must be very broad
consensus on the variations in the product that make it acceptable for one purpose or another.
The economic impact of the development of commodity markets is hard to overestimate.
Through the 19th century "the exchanges became effective spokesmen for, and innovators of,
improvements in transportation, warehousing, and financing, which paved the way to expanded
interstate and international trade."[
Commodity Trading
Commodity trading is an interesting option for those who wish to diversify from the
traditional options like shares, bonds and portfolios. The Government has made almost all
commodities entitled for futures trading. Three multi commodity exchanges have been set up in
the country to facilitate this for the retail investors. The three national exchanges in India are:
• Multi Commodity Exchange (MCX)
• National Commodity and Derivatives Exchange (NCDEX)
• National Multi-Commodity Exchange (NMCE)
Commodity trading in India is still at its early days and thus requires an aggressive growth plan
with innovative ideas. Liberal policies in commodity trading will definitely boost the commodity
trading. The commodities and future market in the country is regulated by Forward Markets
commission (FMC).
http://www.indianmba.com/Occasional_Papers/OP62/OP62.jpg
FMC
Forward Markets Commission (FMC) headquartered at Mumbai, is a regulatory authority
which is overseen by the Ministry of Consumer Affairs, Food and Public Distribution, Govt.
of India. It is a statutory body set up in 1953 under the Forward Contracts (Regulation) Act,
1952.
" The Act provides that the Commission shall consist of not less than two but not exceeding four
members appointed by the Central Government out of them being nominated by the Central
Government to be the Chairman thereof. Currently Commission comprises three members
among whom Shri B.C. Khatua, IAS, is the Chairman, Shri Rajeev kumar Agarwal, IRS and
Shri D.S.Kolamkar, IES are the Members of the Commission."
http://www.fmc.gov.in/
MCX has achieved three ISO certifications including ISO 9001:2000 for quality
management, ISO 27001:2005 - for information security management systems and ISO
14001:2004 for environment management systems. MCX offers futures trading in more than
40 commodities from various market segments including bullion, energy, ferrous and non-
ferrous metals, oil and oil seeds, cereal, pulses, plantation, spices, plastic and fibre. The
exchange strives to be at the forefront of developments in the commodities futures industry
and has forged strategic alliances with various leading International Exchanges, including
Tokyo Commodity Exchange, Chicago Climate Exchange, London Metal Exchange, New
York Mercantile Exchange, Bursa Malaysia Derivatives, Berhad and others.
Key shareholders
Promoted by Financial Technologies (India) Ltd, MCX enjoys the confidence of blue chips
in the Indian and international financial sectors. MCX’s broadbased strategic equity partners
include, NYSE Euronext, State Bank of India and its associates (SBI), National Bank for
Agriculture and Rural Development (NABARD), National Stock Exchange of India Ltd.
(NSE), SBI Life Insurance Co. Ltd., Bank of India (BOI) , Bank of Baroda (BOB), Union
Bank of India, Corporation Bank, Canara Bank, HDFC Bank, Fid Fund (Mauritius) Ltd. - an
affiliate of Fidelity International, ICICI Ventures, IL&FS, Kotak group, Citi Group and
Merrill Lynch.
www.mcxindia.com
• Pulses
➢ Urad,
➢ Yellow peas,
➢ Chana,
➢ Tur,
➢ Masoor,
• Grain
➢ Wheat,
➢ Indian Pusa Basmati Rice,
➢ Indian parboiled Rice (IR-36/IR-64),
➢ Indian raw Rice (ParmalPR-106),
➢ Barley,
➢ Yellow red maize
• Spices
➢ Jeera,
➢ Turmeric,
➢ Pepper
• Plantation
➢ Cashew,
➢ Coffee Arabica,
➢ Coffee Robusta
• Fibers and other
➢ Guar Gum,
➢ Guar seeds,
➢ Guar,
➢ Jute sacking bags,
➢ Indian 28
➢ cotton,
➢ Indian 31mm cotton,
➢ Lemon, Grain Bold,
➢ Medium Staple,
➢ Mulberry,
➢ Green Cottons,
➢ Potato,
➢ Raw Jute,
➢ Mulberry raw Silk,
➢ V-797 Kapas,
➢ Sugar,
➢ Chilli LCA334
• Energy
➢ Crude Oil,
➢ Furnace oil
http://en.wikipedia.org/wiki/National_Commodity_and_Derivatives_Exchange
NMCE is unique in many other respects. It is a zero-debt company; following widely accepted
prudent accounting and auditing practices. It has robust delivery mechanism making it the most
suitable for the participants in the physical commodity markets. The exchange does not
compromise on its delivery provisions to attract speculative volume. Public interest rather than
commercial interest guide the functioning of the Exchange. It has also established fair and
transparent rule-based procedures and demonstrated total commitment towards eliminating any
conflicts of interest. It is the only Commodity Exchange in the world to have received ISO
9001:2000 certification from British Standard Institutions (BSI).
Derivatives
In finance derivatives is the collective name used for a broad class of financial instruments that
derive their value from other financial instruments (known as the underlying), events or
conditions.
Derivatives are usually broadly categorised by:
• The relationship between the underlying and the derivative (e.g. forward, option, swap)
• The type of underlying (e.g. equity derivatives, foreign exchange derivatives, interest rate
derivatives or credit derivatives)
• The market in which they trade (e.g., exchange traded or over-the-counter)
Derivatives are used by investors to
• provide leverage or gearing, such that a small movement in the underlying value can
cause a large difference in the value of the derivative
• speculate and to make a profit if the value of the underlying asset moves the way they
expect (e.g. moves in a given direction, stays in or out of a specified range, reaches a
certain level)
• hedge or mitigate risk in the underlying, by entering into a derivative contract whose
value moves in the opposite direction to their underlying position and cancels part or all
of it out
• obtain exposure to underlying where it is not possible to trade in the underlying (e.g.
weather derivatives)
• create optionality where the value of the derivative is linked to a specific condition or
event (e.g. the underlying reaching a specific price level)
Uses
Hedging
Hedging is a technique that attempts to reduce risk.
Derivatives allow risk about the price of the underlying asset to be transferred from one party to
another. For example, a wheat farmer and a miller could sign a futures contract to exchange a
specified amount of cash for a specified amount of wheat in the future. Both parties have reduced
a future risk: for the wheat farmer, the uncertainty of the price, and for the miller, the availability
of wheat. However, there is still the risk that no wheat will be available because of events
unspecified by the contract, like the weather, or that one party will renege on the contract.
Although a third party, called a clearing house, insures a futures contract, not all derivatives are
insured against counterparty risk.
From another perspective, the farmer and the miller both reduce a risk and acquire a risk when
they sign the futures contract: The farmer reduces the risk that the price of wheat will fall below
the price specified in the contract and acquires the risk that the price of wheat will rise above the
price specified in the contract (thereby losing additional income that he could have earned). The
miller, on the other hand, acquires the risk that the price of wheat will fall below the price
specified in the contract (thereby paying more in the future than he otherwise would) and reduces
the risk that the price of wheat will rise above the price specified in the contract. In this sense,
one party is the insurer (risk taker) for one type of risk, and the counterparty is the insurer (risk
taker) for another type of risk.
Hedging also occurs when an individual or institution buys an asset (like a commodity, a bond
that has coupon payments, a stock that pays dividends, and so on) and sells it using a futures
contract. The individual or institution has access to the asset for a specified amount of time, and
then can sell it in the future at a specified price according to the futures contract. Of course, this
allows the individual or institution the benefit of holding the asset while reducing the risk that the
future selling price will deviate unexpectedly from the market's current assessment of the future
value of the asset.
Derivatives serve a legitimate business purpose. For example a corporation borrows a large sum
of money at a specific interest rate.[1] The rate of interest on the loan resets every six months. The
corporation is concerned that the rate of interest may be much higher in six months. The
corporation could buy a forward rate agreement (FRA). A forward rate agreement is a contract to
pay a fixed rate of interest six months after purchases on a notional sum of money. [2] If the
interest rate after six months is above the contract rate the seller pays the difference to the
corporation, or FRA buyer. If the rate is lower the corporation would pay the difference to the
seller. The purchase of the FRA would serve to reduce the uncertainty concerning the rate
increase and stabilize earnings.
Speculation and arbitrage
Derivatives can be used to acquire risk, rather than to insure or hedge against risk. Thus, some
individuals and institutions will enter into a derivative contract to speculate on the value of the
underlying asset, betting that the party seeking insurance will be wrong about the future value of
the underlying asset. Speculators will want to be able to buy an asset in the future at a low price
according to a derivative contract when the future market price is high, or to sell an asset in the
future at a high price according to a derivative contract when the future market price is low.
Individuals and institutions may also look for arbitrage opportunities, as when the current buying
price of an asset falls below the price specified in a futures contract to sell the asset.
Speculative trading in derivatives gained a great deal of notoriety in 1995 when Nick Leeson, a
trader at Barings Bank, made poor and unauthorized investments in futures contracts. Through a
combination of poor judgment, lack of oversight by the bank's management and by regulators,
and unfortunate events like the Kobe earthquake, Leeson incurred a $1.3 billion loss that
bankrupted the centuries-old institution.[3]
Types of derivatives
OTC and exchange-traded
Broadly speaking there are two distinct groups of derivative contracts, which are distinguished
by the way they are traded in the market:
Over-the-counter (OTC) derivatives
OTC are contracts that are traded (and privately negotiated) directly between two parties, without
going through an exchange or other intermediary. Products such as swaps, forward rate
agreements, and exotic options are almost always traded in this way. The OTC derivative market
is the largest market for derivatives, and is largely unregulated with respect to disclosure of
information between the parties, since the OTC market is made up of banks and other highly
sophisticated parties, such as hedge funds. Reporting of OTC amounts are difficult because
trades can occur in private, without activity being visible on any exchange. According to the
Bank for International Settlements, the total outstanding notional amount is $684 trillion (as of
June 2008).[4] Of this total notional amount, 67% are interest rate contracts, 8% are credit default
swaps (CDS), 9% are foreign exchange contracts, 2% are commodity contracts, 1% are equity
contracts, and 12% are other. Because OTC derivatives are not traded on an exchange, there is
no central counterparty. Therefore, they are subject to counterparty risk, like an ordinary
contract, since each counterparty relies on the other to perform.
Exchange-traded derivatives
ETD are those derivatives products that are traded via specialized derivatives exchanges or other
exchanges. A derivatives exchange acts as an intermediary to all related transactions, and takes
Initial margin from both sides of the trade to act as a guarantee. The world's largest[5] derivatives
exchanges (by number of transactions) are the Korea Exchange (which lists KOSPI Index
Futures & Options), Eurex (which lists a wide range of European products such as interest rate &
index products), and CME Group (made up of the 2007 merger of the Chicago Mercantile
Exchange and the Chicago Board of Trade and the 2008 acquisition of the New York Mercantile
Exchange). According to BIS, the combined turnover in the world's derivatives exchanges
totaled USD 344 trillion during Q4 2005. Some types of derivative instruments also may trade on
traditional exchanges. For instance, hybrid instruments such as convertible bonds and/or
convertible preferred may be listed on stock or bond exchanges. Also, warrants (or "rights") may
be listed on equity exchanges. Performance Rights, Cash xPRTs and various other instruments
that essentially consist of a complex set of options bundled into a simple package are routinely
listed on equity exchanges. Like other derivatives, these publicly traded derivatives provide
investors access to risk/reward and volatility characteristics that, while related to an underlying
commodity, nonetheless are distinctive.
Derivative contract types
There are three major classes of derivatives:
Commodity
Interest
Currency
Security
Forwards
Swaps
Options
Futures
DERIVATIVES
Call
Put Rate
Futures/Forwards
Futures/Forwards are contracts to buy or sell an asset on or before a future date at a price
specified today. A futures contract differs from a forward contract in that the futures contract is a
standardized contract written by a clearing house that operates an exchange where the contract
can be bought and sold, while a forward contract is a non-standardized contract written by the
parties themselves.
Options
Options are contracts that give the owner the right, but not the obligation, to buy (in the case of a
call option) or sell (in the case of a put option) an asset. The price at which the sale takes place is
known as the strike price, and is specified at the time the parties enter into the option. The option
contract also specifies a maturity date. In the case of a European option, the owner has the right
to require the sale to take place on (but not before) the maturity date; in the case of an American
option, the owner can require the sale to take place at any time up to the maturity date. If the
owner of the contract exercises this right, the counterparty has the obligation to carry out the
transaction.
Swaps
Swaps are contracts to exchange cash (flows) on or before a specified future date based on the
underlying value of currencies/exchange rates, bonds/interest rates, commodities, stocks or other
assets.
More complex derivatives can be created by combining the elements of these basic types. For
example, the holder of a swaption has the right, but not the obligation, to enter into a swap on or
before a specified future date.
http://en.wikipedia.org/wiki/Derivative _(finance)
RESEACH TOPIC :
“COMMODITY MARKET TREND IN INDIA’’
PROBLEM STATEMENT:
To study Commodity Market Trend in India .
RESEACH DESIGN:
Descriptive study will take place for this research topic, as the Row data are used in my
study. Research design is the plan and structure of investigation so as to obtain the answer to
research questions.
I have used descriptive research design. As my project will describe the situation of the
return on the different commodities, the raw data of the spot prices of the commodities are
used.
DATA SOURCE:
Secondary data has been used in this research. It is mainly collected from the mcxindia.com
website and from ncdex.com website and mcx literature.
INTERPRITATION:
The chart of the trend analysis shows the overall trend of the returns, yield on the gold during a
span of two years. From the chart it is clear that in most of the time the trend of the gold gives
positive returns. And this trend does not moves parallel. It is also seen in the chart that the return
remains high between 2008 January , September , November and 2009 November And the
return remains low during 2008 October. Short term variation trend indicates that in few cases, it
is found that the short term variation is higher, otherwise it remains comparatively minor. Thus
ultimately the overall position of the trend of the gold’s return is satisfactory.
SEASONAL VARIANCE
It is worth noting to know the seasonal variations for any commodity so that it can be possible to
take the benefits of trading for the time period, which can give the maximum return. Seasonal
variation analysis also helps to divide the total yield return according to their proportion to the
monthly basis so that it become possible to know about the time period which gives the
maximum as well as minimum return.
INTERPRITATION:
The above chart shows the general tendency of the returns, which can be yield from the gold for
a specific period of time during the year. They also show that it is wisely to invest for the traders
and investors in gold for 2008 October to 2009 February & 2009 July to 2009 November, as the
returns during them remains high and it is also clear that the return between 2008 July to 2008
October & 2009 March to June remains not high. Thus, it is not beneficial for the investor to
invest during this period. The chart also indicates that the maximum return can be earned in the
January and November. The festival of DIWALI generally occurs during the October-November,
and it is very much clear that during these months, returns on gold remains comparatively high.
Thus, we can say that such kinds of festivals make an impact on the gold. The seasonal index
continuously falls towards downward after February to April . Indian budget declared on the last
day of February. Thus the events like budget may also make an impact on it.
SILVER TREND
INTRODUCTION:
Silver's unique properties make it a very useful 'Industrial Commodity', despite it being classed
as a precious metal. The price of silver is not only a function of its primary output but more a
function of the price of other metals also, as world mine production is more a function of the
prices of other metals. The tie between silver and economic activity is strong, given that around
two-thirds of total silver fabrication is in the industrial and photographic sectors.
INDIAN SCENARIO:
Silver imports into India for domestic consumption in 2002 was 3,400 tons down 25 % from
record 4,540 tons in 2001. Open General License (OGL) imports are the only significant source
of supply to the Indian market. Non-duty paid silver for the export sector rose sharply in 2002,
up by close to 200% year-on-year to 150 tons. Around 50% of India's silver requirements last
year were met through imports of Chinese silver and other important sources of supply being
UK, CIS, Australia and Dubai. Indian industrial demand in 2002 is estimated at 1375 tons down
by 13 % from 1,579 tons in 2001. In spite of this fall, India is still one of the largest users of
silver in the world, ranking alongside Industrial giants like Japan and the United States. In India
silver price volatility is also an important determinant of silver demand as it is for gold.
INTERPRITATION:
The chart and table, shows the overall trend of the returns, yield on the silver during a span of
two years. It is also seen in the chart that the return remains high between 2008 January,
February, 2009 February, May, September and the return remains low during 2008 March
,April ,2009 January. Short-term variation trend indicates that Short-term variation in Silver
remains higher in the normal cases and the trend does not follow a regular pattern also, so that it
is wisely not to do investment decision for the silver on the basis of its trend analysis.
Seasonal variable
INTERPRITATION:
From the table it is very much clear, the general tendency of the returns, which can be yield from
the silver for a specific period of time during the year. They also show that it is wisely to invest
in the silver for the months during November to February, as the returns remains good between
these months and the return remains low between March to October, so, it is not beneficial for
the investor to invest during this period. It is also clear that November and January are the two
months, which yields the maximum returns. The impact of the ‘DIWALI’ is also seen here.
COPPER TREND
Introduction :
Copper ranks third in world metal consumption after steel and aluminum. It is a product whose
fortunes directly reflect the state of the world's economy.
INDIAN SCENARIO:
The size of Indian Copper Industry is around 4 lakh tons, which as percentage of world copper
market is 3 %. Birla Copper, Sterilite Industries are two major private producers and Hindustan
Copper Ltd the public sector producers. India is emerging as net exporter of copper from the
status of net importer on account of rise in production by three companies. Copper goes into
various usages such as Building, Cabling for power and telecommunications, Automobiles etc.
Two major states owned telecommunications service providers; BSNL and MTNL consume 10%
of country's copper production. Growth in the building construction and automobile sector would
keep demand of copper high.
FACTORS INFLUANCES COPPER MARKET:
World copper mine production through exploration of new mine and expansion of existing
mine. Economic growth of the major consuming countries such as China, Japan, Germany
etc. Growth & development in the Building, electronics and electrical industry.
INTERPRITATION:
From the table is very much clear, the general tendency of the returns, which can be yield from
the copper for a specific period of time during the year. They also show that it is wisely to invest
in copper for January to August, as the returns between them remains good and it is also clear
that the return between September to December remains lower so, it is not beneficial for the
investor to invest during this period. it is also clear that the price of the copper is comparatively
lower then other precious metals and the return yield on it is also not bad. Thus small investors
can also take advantage of the trading in the copper, especially in during January to June.
Dollar fluctuations.
INTERPRITATION:
The chart shows the overall trend of the returns, yield on the crude oil during a span of two
years. From the chart it is clear that in most of the time the trend of the crude oil gives positive
returns. It is also seen in the chart that the returns remains high between 2008 February , April ,
May , June , 2009 January , April and the return remains low during2008 July , October ,
November , December.The trend of crude oil is seemed moving parallel .Chart also indicates that
from the 2009 March to up till now the return yield on crude oil rises continuously. Short-term
variation trend indicates that Short-term variation in crude oil remains high.
SEASONAL INDEX
INTERPRITATION:
From above chart it is very much clear, the general tendency of the returns, which can be yield
from the crude oil for a specific period of time during the year. They also show that it is wisely
to invest in crude oil for January to August, as the returns between them remains high and the
return between September to December is low so, it is not beneficial for the investor to invest
during this period. but in the case of crude oil, it shows minimum returns during these of two
years .