RAHUL IYER (M1043) HARDIK DAMANIA(M1022) ROHIT PAWAR (M1047) ASHUTOSH KUMAR (M1013) ROHAN KHARADE (M1046) SWAPNIL

JADHAV (M1053)

The chemical symbol for gold is Au. Golds atomic number is 79 and its atomic weight is 196.967. Gold melts at 1064.43 Centigrade The specific gravity of gold is 19.3, meaning gold weighs 19.3 times more than an equal volume of water.

WEIGHT EQUIVALENTS

1 troy ounce = 1,097 ordinary ounces 1 troy ounce = 480 grains 1 troy ounce = 31.1 grams 1000 troy ounces = 31.3 kilograms 1 gram = .03215 troy ounces 1 kilogram = 32.15 troy ounces 1 tonne = 32.150 troy ounces 1 ordinary ounce = .9115 troy ounces 1 ordinary pound = 14.58 troy ounces

4000 B.C.

- A culture, centred in what is today Eastern Europe, begins to use gold to fashion decorative objects. The gold was probably mined in the Transylvanian Alps or the Mount Pangaion area in Thrace.

2500 B.C. Gold jewellery is buried in the Tomb of Djer, king of the First
Egyptian Dynasty, at Abydos, Egypt.

1350 B.C. The Babylonians begin to use fire assay to test the purity of
gold.

1091 B.C. Little squares of gold are legalized in China as a form of money

50 B.C. Romans begin issuing a gold coin called the Aureu

1700 A.D. Gold is discovered in Brazil, which becomes the largest producer
of gold by 1720, with nearly two-thirds of the worlds output

1913 A.D. Federal Reserve Act specifies that Federal Reserve Notes be
backed 40% in gold

1947 A.D. The first transistor is assembled at AT&T Bell Laboratories. The
device uses gold contacts pressed into a germanium surface

1987 A.D. The World Gold Council is established to sustain and develop
demand for the end uses of gold

2000 A.D. Astronomers at the Keck Observatory in Hawaii use the giant
gold-coated mirrors of the most detailed images of Neptune and Uranus ever captured

The demand of gold in India and abroad, has outshined many other asset class
Gold has captured the imagination of royalty, investors and households for 1000s of years Gold prices hit a record $1,506.13 an ounce in Q2 11, 8.6% higher than Q1 2011 In times of inflation, people seek to protect their savings by purchasing liquid, tangible assets that are valued for some other purpose.

Precious Metal because of Limited Supply

Gold is seen as a store of value Safety

Lack of Income
Storage and Purity

India currently produces around 0.5% of its annual gold consumption

The value of annual gold imports increased by 1015% between 1992 to 2009 The import of gold has risen by a whopping 222% to $ 13.5 billion between April and May 2011 as compared to last year

In the month of May alone, imports were a staggering $9 billion, with gold demand growing 25%.
Imports of gold were at $8.96 billion in May, a growth of 500% over the previous month and 222% over last year

Indias gold imports may head for a record in 2011 despite a weakening rupee
The country usually imports around 700 tonne to 800 tonne of gold a year Gold imports by India, the worlds largest consumer, may cross 1,000 tonne in 2011, compared with 958 tonne a year before

The country imported around 550 tonne of gold in the first half of the calendar year 2011
a price range of R25,500 to R26,000 per 10 grams will be a reasonable bet this season although the rupee has weakened

Coins and small bars Exchange Traded Funds (ETFs) Futures and options Warrants Gold accounts Gold Accumulation Plans (GAP) Gold Mining stocks Gold Certificates Gold orientated funds Structured products

Gold prices around the world are having a slightly bumpy but steady road to higher values.

The rate cut by 25 basis points to 4.25%, will temporarily bolster the flagging dollar for a period but will not affect the value of gold in the long term. Weaker dollar and higher debt cannot be sustained and despite overseas shoring up of the dollar we can expect a further decline in the coming months
Demand for gold jewellery in China could increase 20 per cent by the end of the year, which would make China the world's second-largest gold consumer

Copper is the world's third most widely used metal, after iron and aluminum
It is primarily used in highly cyclical industries such as construction and industrial machinery manufacturing Profitable extraction of the metal depends on cost-efficient high-volume mining techniques, and supply is sensitive to the political situation particularly in those countries where copper mining is a government-controlled enterprise

Copper prices in India are fixed on the basis of the rates that rule on LME the preceding day.
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 and development in the Building, electronics and electrical industry

Economic, technological and societal factors influence the supply and demand of copper As society's need for copper increases, new mines and plants are introduced and existing ones expanded. Land-based resources are estimated at 1.6 billion tons of copper, and resources in deep-sea nodules are estimated at 0.7 billion tons. The global production of refined copper is around 15 million tons

The major copper-consuming nations are Western Europe (28.5%), the United States (19.1%), Japan (14%), and China (5.3%). Copper and copper alloy scrap composes a significant share of the world's supply. The largest international sources for scrap are the United States and Europe. Chile, Indonesia, Canada and Australia are the major exporters and Japan, Spain, China, Germany and Philippines are the major importers

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 usage 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
But still consumption of copper in India is low as compared to china and overall consumption as compared to other countries is also low

The Indian steel industry has entered into a new development stage from 2005-06, with an average growth rate of 12 per cent per annum in steel output, for the last two years

India is the 5th largest producer of crude steel in the world and is expected to become the 2nd largest producer by 2015-16

India Steel Industry has grown by leaps and bounds especially in recent times with Indian firms buying steel companies overseas

India continues to maintain its lead position as the world's largest producer of direct reduced iron (DRI) or sponge iron during January-December 2010, a rank it has held on since 2002
222 MoUs have been signed with various States for planned capacity of around 276 million tonne

The steel sector in India grew by 5.3% in May 2009. Globally India is the only country to post a positive overall growth in the production of crude steel at 1.01% for the period of January - March in 2009

Currently with a production of 56 million tones India accounts for over 7% of the total steel produced globally, while it accounts to about 5% of global steel consumption Government targets to increase the production capacity from 66 million tones annually to 124 MT in the first phase which will come to an end by 2011-12
Investment plans are in the States of Orissa, Jharkhand, Chhattisgarh, West Bengal, Karnataka, Gujarat and Maharashtra

India
Brazil Qatar

IR have plan to introduce, 300-350 km per hour trains and 225 stations to develop in the next five years
Construction sector will require an investment of Rs.14,000 billion in the next 5-6 years during 11th plan and even thereafter. Government-owned India Railways was planning a $1.4billion investment between 2012 and 2017 to construct a 1 744-km dedicated track network to augment the transportation capacity for mining produce

Also there is new metro project coming up in Ahmedabad The new airport construction at Navi Mumbai

Critical to improve productivity across all sectors. Need to develop infrastructure to complement and sustain the economic growth. Public-private partnership Emerging opportunities in the various sectors of infrastructure. Proper balance between economic progress & environment. Land acquisition Budget 2010: Rs 1,73,552 crore provided for infrastructure development

Various phases of Infrastructure development

Source: www.infrastructure.gov.in

Year

Length of road works completed (km) 22,891 30,710

Expenditure (Rs. Crore) 4,100.4 7,304.3

2005-06 2006-07

2007-08
2008-09 Apr.-Dec. 2009

41,231
52,405 36,273

10,618.7
15,162.0 12,993.1

Source : National Rural Roads Development Agency.

Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY)

69,963 villages have been electrified Connection been released to 88.8lakh BPL households. Under 10th plan 68,763 villages and 83.10 lakh BPL connections were sanctioned

Mega infra-structure project of USD 90 billion with the financial & technical aids from Japan. Covering an overall length of 1483 KMs between the political capital and the business capital of India and passing through the six States U.P, NCR of Delhi, Haryana, Rajasthan, Gujarat and Maharashtra, Distribution of length of the corridor :Rajasthan (39%) and Gujarat (38%) together constitute 77% of the total length of the alignment of freight corridor, followed by Haryana and Maharashtra 10% each and Uttar Pradesh and National Capital Region of Delhi 1.5 % of total length each. This project incorporates Nine Mega Industrial zones of about 200250 sq. km., high speed freight line, three ports, and six air ports; a six-lane intersection-free expressway Several industrial estates with top-of-the-line infrastructure would be developed along this corridor to attract more foreign investment.

India Myanmar-Thailand Trilateral Highway: India Myanmar Thailand Trilateral Highway (IMTTH) from Moreh (in India) to Mae Sot (in Thailand) through Bagan (in Myanmar) links India with Southeast Asia
India Myanmar Thailand Vietnam Railway Cooperation: Delhi Hanoi Railway Link: links Indias Manipur with Indias main railway corridor, and establish and renovate railway networks in Myanmar.

Allocation of Rs 2.14 lakh crore towards developing the country's infrastructure in the next fiscal
To enhance the flow of funds to the infrastructure sector, the FII limit for investment in corporate bonds, with residual maturity of over five years issued by companies in infrastructure sector, is being raised by an additional limit

Since most companies in the sector are organised in the form of SPVs, FIIs would now be permitted to invest in unlisted bonds with a minimum lock-in period of three years. To attract foreign funds for infrastructure financing, the FM has proposed to create special vehicles in the form of notified infrastructure debt funds. Interest payments on the borrowings of these funds will have a reduced withholding tax rate of 5% instead of the current rate of 20%, while full exemption of income of the fund from tax has been proposed. Tax free bonds of Rs 30,000 crore for the enhancement of infrastructure in railways, ports, housing, and highways.

Allocation to the tune of Rs 58,000 crore has been planned for the Bharat Nirman scheme, an increase of Rs 10,000 crore from the current year. Full exemption from basic customs duty has been extended to bio-asphalt, an emerging green technology for the surfacing of roads. The finance minister also proposed to raise the corpus of rural infrastructrure development fund from Rs 16,000 crore to Rs 18,000 crore. Tax sops in infrastructure investment up to Rs 20,000 has been extended by a further one year.

Capital Availability
Competitiveness

Regulatory Environment
Stability

Local Chinese Market and Business Climate

Openness to Regional and International Trade

Source: ITU Dtabase

ENERGY SECTOR

Source: www.iea.org

Source: www.iea.org

Source: www.iea.org

Source: www.iea.org

Source: www.iea.org

Rising global demand from emerging economies and low worldwide supplies Government subsidiary
Foreign investment Greater demand for alternative energy.

Agriculture is the staple of almost every country's economy The food and farming industry is critical to the balance of trade and employment in every nation
4 percent of the worlds GDP

It is the second largest producer of fruits and vegetables. It is home to the largest number of livestock in the world. It is the third largest producer of food grains. With above 9500 spices from medicinal and aromatic plants, India is truly a treasure trove of spices, accounting for 25-30 per cent of the worlds production. India is the largest producer, consumer and exporter of spices

Huge opportunity
Government support Developing economy

Good climate for growth of agriculture

15 mega food parks to be set up Rs 5,000 crore to be provided to SIDBI for refinancing incremental lending by banks 24 new cold storage projects sanctioned Private investment in agro processing industries to be increased Government allows 100 per cent FDI in beekeeping

Seed Fertilizer Agriculture equipment Warehousing and Cold chain Food processing Organic food

1.
2.

Buy directly into the futures

Buy ETFs that give exposure to agriculture futures. Buy an ETF that tracks agriculture stocks Buy directly into stocks involved with agriculture

3. 4.

High yield and increasing profit

Subsidies from government Availability of credit Growth in organized retail Huge export market

Israel
New Zealand

Real Estate business was one of the key drivers of growth before the economic slowdown. Real Estate business goes hand in hand with other sectors such as IT ITeS Retail Hospitality and Tourism Growth in these sectors influence and affect the growth of the real estate sector as well. Real Estate attracts high inflow of FDI.

The property market in India has traditionally been unorganized and fragmented. Real Estate business was one of the key drivers of growth before the economic slowdown. However, the recent past has seen a consolidation of positions in the market as developers are stretching their capacities to the maximum in order to meet the growing market demand, which in turn has encouraged large projects with sourced financing. The IPOs by large real estate developers like Sobha, Raheja and DLF have led to organization of the market in the Tier I cities, but the Tier II and Tier III cities still demonstrate the traits of an unorganized market. Despite all this, the increasing requirements of multi national occupiers, as well as the influx of international property consultancies has led to the introduction of greater availability of market information, both in published and private form pushing the sector to an organized market form.

Booming economy; accelerated GDP to 8% p.a. Indias emergence as an attractive offshoring destination and availability of pool of highly skilled technicians and engineers Development of large captive units of major players include GE, Prudential, HSBC, Bank of America, Standard Chartered and American Express Rise in disposable income and growing middle class, increasing the demand for quality residential real estate and real estate as an investment option. Entry of professional players equipped with expertise in real estate development Relaxation of legal rulings and processes by the governing bodies encouraging investments in real estate Improvement in infrastructure facilities

The demand for new office space in India has grown from an estimated 3.9 million sq. ft in 1998 to over 16 million sq. ft in 2004-05. 70% of the demand for office space in India is driven by over 7,000 Indian IT and ITES firms and 15% by financial service providers and the pharmaceutical sector. In 2005 alone, IT/ITES sector absorbed a total of approx 30 million sq. ft and is estimated to generate a demand of 150 million sq. ft. of space across major cities by 2010. With reference to the availability of infrastructure facilities, following cities are currently attracting MNCs/corporate/real estate developers: Tier I cities, Mumbai (Commercial hub), Delhi (Political hub) and Bangalore (Technological hub): Preferred option for many new market entrants Command the highest international profiles and significant proportion of FDI Offer qualified labor pool and the best infrastructure facilities Exhibit development of sub-urban commercial real estate Yield of 9.5 10%

 Tier II cities, notably Hyderabad, Chennai, Chandigarh, Kochi, Mangalore, Mysore,

Thiruvananthapuram, Goa, Bhubaneshwar, Ahmedabad and Pune Yield of 10.5-11.5% Offer competitive business environments, human resources availability, telecommunications connectivity, quality of urban infrastructure, Attract high value IT, ITES and biotech corporate houses Tier III cities, like Cuttack and Jaipur Low liquidity and still highly unorganized. Special Economic Zones: 28 operational SEZs in the country, including those converted from Export Processing Zones (EPZ) to SEZ Development of SEZs in various segments such as multi-product, Information Technology, Bio-technology, Gems and Jewellery, Textiles and technology intensive industries Attract both developers and corporate houses (refer table for a list of corporate that have shown interest in development of SEZs)

Reliance Industries ----------- Gurgaon, Mumbai/Navi Mumbai Adani Group ----------Mundra TCG Refineries ---------- Haldia Suzlon ------------ Coimbatore, Udipi, Vadodara Hindalco ------------ Sambalpur Genpact ------------ Bhubaneshwar, Jaipur, Bhopal Vedanta ------------ Orissa
Apart for the corporate clientele, the SEZs also attract a number of real estate developers, including DLF, Ansals, Omaxe, Parsvnath, Shipra Estate to name a few.

Listed below are the salient features of each category: Commercial Real Estate Office Space Backed by strong infrastructure Promoted by increasing demand from IT industry Shift of focus from the traditional CBDs towards secondary centers owing sharply higher land prices in the city centers. Retail Space Growth of 25- 30% expected in the organized retail sector (malls and multiplexes) leading to an increased demand in real estate Affected by government policies for foreign retailers Pronounced in the Tier I, Tier II and Tier III cities.

Hospitality Space Increasing demand of lodging in commercial cities such as Bangalore, Mumbai, Delhi etc. from business travelers. Established brands in this sector include Asian Hotels, Indian Hotels, ITC, Le Meridien etc are in expansion mode with many new players such as Accor Group, Marriot, Choice, IHG Group
Criteria Annual Growth Rate of the Industry Number of foreign tourists in 2009 Statistics 8% 4000000

Total number of five star rooms (2009)

Total number of five star rooms needed by 2011

96000
150000

Residential Real Estate Development triggered by: Low per capita housing stock Rising disposable income Easy availability of finance Currently growing at 30-35% per annum Driven by retail investors who view real estate as an attractive investment option as compared to mutual funds and stocks Geographically widespread with townships being built in both the metros and the tier II and III cities

Real Estate Investment Banking is an approach to real estate financing providing the client a host of services including the structuring of real estate projects, legal advice, operative management of real estate projects and support in marketing properties. The banking focus in Real Estate Investment Banking is on structured financing products and structuring of entire portfolios. Extending on similar lines is the importance of syndication that forms the base line of larger-sized transactions.

LIQUIDITY RISK The real estate investment market is still in its infant stage. The time required for liquidity of real estate property can vary depending on the quality and location of the property. REGULATORY RISKS In terms of property ownership, permission from the Reserve Bank of India is required for foreign investors. For capital repatriation, investors need to apply for approval from the RBI, and foreign direct investment is limited to a limited set of opportunities (e.g. townships).

MACROECONOMIC RISKS Interest rates, inflation and exchange rate risks are amongst the important macroeconomic indicators and have shown decreased volatility. The provision of facilities, is in many regions, still inadequate (education, transport infrastructure). These risk factors are not likely to disappear in the near future, impeding the development of the real estate sector. OWNERSHIP AND LAND TITLE ISSUES Lack of information and low transparency in the real estate segment in India, coupled with the age old property related issues discourages the investment of the large players in the semi urban and rural areas thus slacking an overall growth of the real estate sector

The Indian real estate sector promises to be a lucrative destination for foreign investors into the country. The Indian realty sector, if channelized properly, could catapult the growth of several other sectors in India through its backward and forward linkages. However, there are potential constraints for domestic as well as foreign investments in India. Absence of a single regulator to monitor business practices prevailing in Indian real estate market is perceived to be a risk factor by investors. The SEZ guidelines which are issued by the Commerce Ministry are constantly modified, creating uncertainty. Since the liberalization of FDI norms, significant foreign investments have flown into real estate; but availability of suitable exit options for such investments is still constrained.