Despite this rough start, December 2024 had shown a more positive trend, with FPIs making net investments of Rs 15,446 crore in Indian equities. However, the year-end numbers also hinted at a slowdown in momentum, as the annual net buying value plummeted to just Rs 427 crore, reflecting a stark 99% decline compared to 2023.

Key Drivers Behind FPI Pullout

The sharp fall in FPI inflows is attributed to several global and domestic factors. On the global front, the robust performance of the US economy continued to dominate investment trends. Strong stock market gains, higher interest rates, and the appeal of US bonds and money markets diverted investor attention away from emerging economies, including India.

Domestically, the Indian equity markets faced challenges such as elevated valuations, a high market cap-to-GDP ratio, and slowing GDP growth. Weaker industrial output and reduced corporate earnings further dampened investor sentiment.

Volatility Ahead for 2025

The significant early sell-off by FPIs highlights their cautious approach as they navigate global economic uncertainties alongside domestic concerns. This trend suggests that Indian equity markets could face increased volatility in the coming months, with FPIs likely to reassess their strategies based on evolving market conditions.

The Road Ahead for India

The decline in FPI inflows serves as a wake-up call for policymakers and market stakeholders. To sustain foreign investment and drive economic growth, India must address both global and domestic challenges. Efforts to enhance industrial output, strengthen corporate earnings, and make the market more appealing to international investors will be critical to reversing this trend.

While the new year may have started on a turbulent note, the Indian equity markets have a proven track record of resilience. How they navigate this period of uncertainty will define their trajectory for the rest of 2025.

The post FPI Begins 2025 with Aggressive Equity Sell-Off in Indian Markets appeared first on FolksTimes.

Taking to the social media platform Truth Social, Trump declared that the US would no longer tolerate efforts to diminish the dollar’s dominance. “The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER,” Trump stated.

He further warned that nations attempting to replace the US dollar would face severe economic repercussions, including losing access to the US market. “We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100 per cent Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy. They can go find another ‘sucker!’”

Trump dismissed any likelihood of the US dollar being replaced in international trade, emphasizing that such attempts would lead to the isolation of the countries involved. “There is no chance that the BRICS will replace the U.S. Dollar in International Trade, and any Country that tries should wave goodbye to America,” he added.

Trump’s remarks followed Russian President Vladimir Putin’s proposal during the BRICS summit in Kazan in October to create a new investment platform. Putin emphasized the importance of reducing dependence on the US dollar and promoting a low-emission economic model.

“We propose to set up a new investment platform of BRICS,” Putin said during the plenary session. “New BRICS global investment platform to provide financial resources for all countries of the Global South,” he added, as reported by Reuters.

The BRICS group currently operates two financial platforms:

1. The New Development Bank (NDB): Based in Shanghai, it mobilizes resources for infrastructure and sustainable development projects in BRICS and other emerging economies.
2. The Contingent Reserve Arrangement (CRA): Provides short-term liquidity support for BRICS members via currency swaps to strengthen financial stability.

BRICS, originally comprising Brazil, Russia, India, China, and South Africa, expanded its membership in 2024 to include Egypt, Iran, the UAE, Saudi Arabia, and Ethiopia.

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