Business
Gold ETFs in India Experience Historic Inflow of Rs 3,751 Crore in January Amid Global Tensions and US Tariffs
The growth in gold ETFs over the past year has been astounding, showing an annual increase of 471 percent in inflows, climbing from Rs 657 crore in January 2024 to Rs 3,751.4 crore in January 2025.
In addition to soaring investment figures, gold ETFs have also provided solid returns, with an average gain of nearly 7.29 percent in January alone. Several factors contributed to this surge in investment, including rising gold prices and heightened market volatility prompted by US President Donald Trump’s tariff threats. In light of global uncertainties and geopolitical tensions, many investors have turned to gold as a safe-haven asset.
Moreover, the anticipation of interest rate cuts by prominent central banks, including the US Federal Reserve, has further enhanced gold’s appeal. Lower interest rates decrease the opportunity cost of holding gold, driving up demand.
Investors are increasingly leveraging gold ETFs to hedge against inflation and diversify their portfolios. Given the ongoing inflationary pressures affecting global economies, gold remains a favored asset for those seeking stability.
After reaching an all-time high earlier this week, gold prices have experienced fluctuations, with a decline observed on Wednesday in response to hawkish remarks from US Federal Reserve Chair Jerome Powell, who indicated a more cautious pace regarding rate cuts.
On the Multi Commodity Exchange (MCX), gold futures for April delivery dropped by Rs 345, settling at Rs 85,178 per 10 grams. In the international market, gold futures fell by 0.18 percent to $2,892.76 per ounce.
Notably, on February 10, gold prices surged to new highs in the domestic futures market amid growing uncertainty surrounding President Trump’s tariff policies, which drove demand for the precious metal. On that day, the price of 24-carat gold reached Rs 8,537 per gram, while 22-carat gold was priced at Rs 8,332 per gram, according to the India Bullion and Jewellers Association (IBJA).
According to the Ministry of Labour & Employment, EPFO registered approximately 7.54 lakh new subscribers in March, reflecting a 2.03% increase from February 2025 and 0.98% growth year-over-year compared to March 2024.
The data further indicates that around 13.23 lakh former members rejoined EPFO in March 2025, showcasing a 0.39% increase compared to February. Notably, about 2.08 lakh new female subscribers joined in March, representing a 0.18% increase from the previous month and a 4.18% year-over-year growth from March 2024.
A key highlight is the prominence of the 18-25 age group, which saw the addition of 4.45 lakh new subscribers, making up 58.94% of the total new membership in March. This age group experienced a 4.21% increase from February and a 4.73% rise compared to the previous year.
Additionally, the net payroll addition for the 18-25 age group in March 2025 is approximately 6.68 lakh, demonstrating a 6.49% increase from March 2024.
State-wise analysis reveals that the top five states/UTs contributed around 59.67% of the net payroll addition, totaling approximately 8.70 lakh net payroll for the month. Maharashtra leads the way, accounting for 20.24% of net payroll, while Tamil Nadu, Karnataka, Haryana, Gujarat, Delhi, Uttar Pradesh, and Telangana each contributed over 5% of the total.
Furthermore, the Labour Ministry stated that approximately 45.59% of the total net payroll addition is attributed to specialized services, including manpower suppliers, general contractors, security services, and other activities.
The selloff was widespread, with the BSE Midcap and Smallcap indices closing down by 1.65% and 0.96%, respectively. The total market capitalization of BSE-listed companies decreased from approximately ₹444 lakh crore to nearly ₹438 lakh crore compared to the previous session.
Almost all sectors ended in the red, with the Nifty Auto index falling over 2%. The FMCG, Media, Pharma, Private Bank, and Realty sectors each saw declines of over 1%. The Nifty Bank index dropped by 1%, while the Financial Services index fell by 1.2%.
On the Nifty50, Coal India rose by 1.55%, Tata Steel increased by 1.28%, and Hindalco Industries went up by 1.16%, making them the top gainers. Conversely, 42 stocks closed lower, including Eternal (-4.21%), Hero MotoCorp (-3.16%), and Bajaj Auto (-2.84%).
Notably, 82 stocks reached their 52-week highs during intraday trade on the BSE, including Shree Cement, Dalmia Bharat, and APL Apollo Tubes. In contrast, Aether Industries and Jai Balaji Industries hit their 52-week lows during the same period.
Coal India gained 2.88%, emerging as a top performer in the Nifty 50, while Hindalco and Tata Steel also showed resilience, with Hindalco up by 1.8% and Tata Steel by 1.2%.
In the auto sector, Hero MotoCorp, Maruti Suzuki, and Bajaj Auto faced declines as investors engaged in profit-taking. Mahindra & Mahindra shares fell by 2%, with trading volumes exceeding 720,000 shares, significantly above average.
The Indian Rupee broke its two-day uptrend, falling 24 paise against the dollar to settle at 85.63. Investors opted for profit-booking and maintained a cautious approach due to a lack of significant positive catalysts and ongoing uncertainty regarding U.S. fiscal stability. A sell-off in Japanese bonds has heightened borrowing costs, further contributing to global market unease and suppressing risk appetite.
Despite the overall downturn, the production of cement, coal, steel, electricity, and natural gas showed positive growth during the same period.
The slowdown can be attributed mainly to decreases in the production of refinery products and fertilizers, alongside the effects of a high base from the previous year.
Coal production rose by 3.5% in April compared to the previous year, with its cumulative index increasing by 5.1% from April to March 2024-25 over the same period last year. Cement production saw a 6.7% increase in April, while its cumulative index grew by 6.3%. Steel production increased by 3%, and electricity generation rose by 1%.
Conversely, natural gas production grew by 0.4%, but petroleum refinery output decreased by 4.5%. Additionally, crude oil production fell by 2.8%, with its cumulative index down by 2.2% during the same reporting period compared to the previous year.
The eight core industries contribute 40.27% to the Index of Industrial Production (IIP), making them crucial for assessing the overall performance of the industrial sector.
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