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SUMMER INTERNSHIP PROGRAM

Project Proposal

Submitted to:

Prof. Renu Verma

Submitted By:

Sukh Angad Singh

10BSP1052

angisingh01@gmail.com

9953227039
1. Project Proposal- Determination of affects of prices of crude oil

2. Description of Project in brief-

Company Profile -The IIFL (India Infoline) group, comprising the holding company, India
Infoline Ltd (NSE: INDIAINFO, BSE: 532636) and its subsidiaries, is one of the leading players
in the Indian financial services space. IIFL offers advice and execution platform for the entire
range of financial services covering products ranging from Equities and derivatives,
Commodities, Wealth management, Asset management, Insurance, Fixed deposits, Loans,
Investment Banking, GoId bonds and other small savings instruments. IIFL has been awarded
the ‘Best Broker, India’ by Finance Asia and the ‘Most improved brokerage, India’ in the Asia
Money polls. India Infoline was also adjudged as ‘Fastest Growing Equity Broking House -
Large firms’ by Dun & Bradstreet. A forerunner in the field of equity research, IIFL’s research is
acknowledged by none other than Forbes as ‘Best of the Web’ and ‘…a must read for
investors in Asia’. Our research is available not just over the Internet but also on international
wire services like Bloomberg, Thomson First Call and Internet Securities where it is amongst
one of the most read Indian brokers. Promoter of IIFL is Mr.NIRMAL JAIN (Chairman).

Project Description – The project is based on research of commodity market with reference
to crude oil.

 What is Commodity Market?

Commodity markets are markets where raw or primary products are

exchanged. These raw commodities are traded on regulated commodities
exchanges, in which they are bought and sold in standardized contracts.
There are various commodities which are traded such as bullions, base
metals, energy products, agriculture products etc.

In the project we will first discuss History of Crude oil in this we will discuss background and
supply of crude oil. Further we will discuss the definition of oil and crude oil. In this we will
discuss following topics:

1- Composition of crude oil

2- Empirical equation and thermal properties of crude oil
3- Reservoirs of crude oil
4- Classification of crude oil
5- Distillation of crude oil

Next we will study the following:

1-Factors effecting the prices of crude oil (micro and macro factors)
2-Study how to invest and make profit from crude oil as commodity
3-Study of hedging techniques (what is short and long position and making profit in both
cases)
4- Study the future market and its trend
5 –With this also we will study other commodities like Gold, Silver, Nickel, Platinum etc.
6-Also we have to market a product of company and make an investor for this product.
7-We will also do wealth management techniques and portfolio analysis and optimize the risk.

3- Objective of the Project:

There are many objectives of project which are as follows:
1- To know about the crude oil as commodity and how profit can be made from it.
2- To know various hedging techniques and other commodities.
3-To know how to do portfolio analysis of investors
4-To know how to do wealth management

4-Methodology:

To understand the commodity market of crude oil, Secondary research is done. I track the
commodity market on daily basis in which I analyze the Intra-day fluctuations in crude oil in
commodity market. There can be various Micro and Macro reasons of this fluctuation. The
crude oil is a commodity which moves with other factors also in positive and negative
correlations with Indian Share market, US Share market, Dow Jones index, price of US Dollar
against Rupee. So the research of these entire prospects show the relation of gold price with
every factor.

5-Schedule:

The Schedule of whole study is 14 weeks i.e. 15 th February to 21st May.

6-Limitations of the study:

1- To study the entire prospects of commodity market with reference to gold, The time period
available for summer internship is not adequate.

2- Availability of standard data is less for the study.

3- Since gold is most widely used bullion in respect to usage, reserves, investment in entire
globe. So the all factors affecting its environment globally can’t be considered.
7-Refrences:

1- www.indiainfoline.com
2- www.moneycontrol.com
3- 101 FAQ on Commodity and Derivatives by Forward Market commission
4- www.mcxindia.com
5- www.opec.org

Faculty Guide Name: Mr. Kapil Gupta

Company Guide Name: Mr Sachin Jain

Date: 11th march 2011 Karun Banga