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ET Intelligence Group: A booming market for initial public offerings (IPO) continued to lure foreign portfolio investors (FPIs) in 2024 as they were net sellers of Indian equities in the secondary market amid rich valuations, sluggish demand and slowing GDP growth. Given the sustained flow of companies filing draft red herring prospectus (DRHPs) with the markets regulator as a part of the IPO launch process, the domestic primary market is likely to remain a major route of equity investment for foreign investors in 2025 as well.In 2024, FPIs pumped ₹1.22 lakh crore ($14.5 billion) into the primary market, the most they've invested in IPOs and qualified institutional placements (QIPs), according to NSDL data. This more than offset their exit from the secondary market to the tune of ₹1.21 lakh crore ($14.37 billion), resulting in a net inflow of ₹426.9 crore ($124 million) for the calendar year. This compares with the net total investment of ₹1.71 lakh crore ($20.74 billion) by FPIs in the previous year, the highest annual investment in domestic equities till date.116867826IPOs provide an efficient route for investment in new businesses as they are often launched at attractive valuations compared with listed peers. In addition, a bulk investment in IPOs does not have any price impact, unlike a purchase in the secondary market.The domestic primary market reported a strong flow of new offerings in 2024. A record 90 companies raised over ₹1.6 lakh crore through the IPO route during the year. That broke the earlier record of 63 companies raising nearly ₹1.2 lakh crore in 2021. Trend of Past Decade FPIs have shown a greater interest in the domestic primary market in recent years.An analysis of their annual fund flow shows that they invested ₹4.6 lakh crore ($61,43 billion) at the aggregate level in the 10 years to 2024. Of this, three-fourths or ₹3.42 lakh crore ($43.43 billion) was invested in the past five years and 41% or ₹1.89 lakh crore ($22.84 billion) was invested in the last three years.In December, FPIs invested ₹18,036.1 crore ($2.12 billion) in the primary market while selling ₹2,589.6 crore worth of equities in the secondary market. Their net total investment was ₹15,446.5 crore ($1.83 billion) for the month.Domestic mutual funds continued to support equities in December. They had invested a net ₹14,467.3 crore as of December 20, taking the total net investment to ₹4.2 lakh crore in 12 months.

Mumbai: Investors must continue to treat gold as a key component of their investment portfolios in 2025 as the precious metal will not only provide the benefit of diversification, but is also set to post gains for the fourth consecutive year, said experts.While gains this year are unlikely to be as sharp as those last year, investors should use corrections in prices as a buying opportunity, they said.Crossing ₹80,000 per 10 grams to an all-time high in the domestic market, gold prices have gained more than 26% in 2024, fuelled by geopolitical uncertainties, prospects of lower interest rates in the US and buying from global central banks. For this year, the policies and stance in the US after Donald Trump takes charge later this month will be an additional factor to look out for and could underpin gains in gold, apart from factors which drove gains in 2024.116867578"Gold was doing well the last time Donald Trump came to power in 2016 but saw initial hiccups after he started pursuing his policies," said Chirag Mehta, chief investment officer at Quantum Mutual Fund. "The uncertainty created after that and the need to diversify away from the dollar led to higher gold prices, and I think it is going to play similarly to what we saw last time," he said.He recommends using any correction in gold prices in the short term as an opportunity to buy, and following a staggered approach to accumulate gold over the next few months."Changes planned by the new US administration are very aggressive and could be inflationary in nature, and interest rates may need to be reduced to support growth," Mehta said. "On a real interest rate basis, if inflation is higher and interest rates are falling, it could be a very bullish scenario for gold," he said.Gold prices gained 14% in 2023 and 12% in 2022, outperforming several asset classes on a three-year basis."2024 has been a golden year for gold - from the perspective of being a safe haven, as a diversifier of portfolios, and from the perspective of returns from an asset class," said Sachin Jain, the regional chief executive officer of India for the World Gold Council. While he sees prices remaining range-bound through the year, he maintained that 10-15% of one's portfolio should be invested in gold.

Russian gas supplies sent via Ukraine to Europe for more than 40 years are scheduled to end on January 1 after Ukraine's Naftogaz refused to renew its latest five-year transit deal with Russia's Gazprom. Despite the war between the two countries, Ukrainian President Volodymyr Zelenskiy on Dec 19 said Kyiv might consider allowing the transit of Russian gas if payments to Moscow were withheld until the fighting ends. Russian President Vladimir Putin a week later said there was no time left this year to sign a new deal. Here is what we know about options for when Russian gas transit via Ukraine stops. HOW BIG ARE THE VOLUMES? Russia's supply to Europe has fallen dramatically in the wake of Moscow's invasion of Ukraine in Feb. 2022 which spurred the European Union to cut its dependence on Russian gas. Moscow spent half a century building its European gas market share, which at its peak stood at about 35% but has fallen to about 8%. As of Dec. 1 the EU received less than 14 billion cubic metres (bcm) of gas from Russia via Ukraine, down from 65 bcm/year when the latest five-year contract began in 2020. The European Commission has said that volume can be fully replaced by liquefied natural gas and non-Russian pipeline imports. Moscow has lost market share to rivals such as Norway, the United States and Qatar. Russia could earn around $5 billion on sales via Ukraine this year based on an average Russian government gas price forecast of $339 per 1,000 cubic metres, Reuters calculations show. Ukraine earns between $800 million and $1 billion in transit fees per year. EU gas prices rallied in 2022 to record highs after the loss of Russian supplies. With supplies set to end, EU officials and traders say a repeat of that rally is unlikely given the now modest volumes involved and the small number of customers remaining. WHO IS AFFECTED? The Ukraine route serves Austria and Slovakia. Austria received most of its gas via Ukraine, while Slovakia takes around 3 bcm from Gazprom per year, about two-thirds of its needs. Gazprom halted supply to Austria's OMV in mid-November over a contractual dispute but volumes held steady via the route as other buyers stepped in. Slovakia has said the loss of Russian supply would not hit its consumption and that it has diversified supply contracts. Its main gas buyer SPP has contracts for non-Russian supply with BP, Eni, ExxonMobil, RWE and Shell. WHAT OPTIONS DO BUYERS HAVE? Most other Russian gas routes to Europe are shut including Yamal-Europe via Belarus and Nord Stream under the Baltic Sea. One option is the TurkStream pipeline to Turkey under the Black Sea, Bulgaria, Serbia or Hungary. However, capacity is limited. Slovakia's gas supply could come from Hungary, roughly a third from Austria and the remainder from the Czech Republic and Poland, according to Austrian energy regulator E-Control. Austria should not face disruptions as it has prepared for the switch in supply, its regulator has said. The Czech Republic is likely to tap more supply from Germany pipelines taking advantage of an exemption from a German domestic gas levy from Jan. 1. The Czech Republic has said it is ready to provide Slovakia with gas transit and storage capacities. Russia supplies Moldova with about 2 bcm of gas per year. It is piped via Ukraine to the breakaway region of Transdniestria where it is used to generate cheap power that is sold to government-controlled parts of Moldova. Gazprom said it plans to suspend supply on Jan. 1 citing unpaid bills. Moldovan Prime Minister Dorin Recean has condemned the decision but said the country has diversified sources of supply. The country plans measures to reduce consumption by at least a third from Jan. 1. As for Ukraine, its security of supply will not be impacted as it does not use Russian transit gas, the European Commission said. WHERE DOES THE GAS COME FROM? The Soviet-era Urengoy-Pomary-Uzhgorod pipeline carries gas from Siberia via the town of Sudzha - which is now under control of Ukrainian military forces - in Russia's Kursk region. It flows through Ukraine to Slovakia where the pipeline splits into branches going to the Czech Republic and Austria. Transdniestria borders Ukraine and also receives Russian gas via Ukraine.

Indian benchmark indices started 2025 on a positive note on Wednesday aided by buying trends in most sectors, particularly in auto and banks. While the S&P BSE Sensex settled at 78,507.41, up by 368.40 points or 0.47%, the broader Nifty closed at 23,742.90, higher by 98.10 points or 0.41%.Commenting on the day's action, Vinod Nair, Head of Research at Geojit Financial Services called the beginning of 2025 positive with broad-based recovery. However, the sustainability of the trend will depend on the earnings growth in Q3, where the expectation is positive on a QoQ basis, he said.What should traders do? Here’s what analysts said:Rupak De, LKP SecuritiesThe index remained volatile but maintained a positive bias throughout the day. Short-term sentiment appears strong, with the index rising for the second consecutive session. However, the key hurdle remains the index's position below the 200-day moving average (200 DMA). The ongoing rally may face resistance around 23,900–24,000. A decisive move above 24,000 could trigger an extension towards 24,500. On the downside, support is seen at 23,550.Ajit Mishra, Religare BrokingThe markets began the calendar year on a positive note, gaining nearly half a percent. After an initial decline, buying interest in select heavyweight stocks across sectors quickly erased losses, gradually pushing the index higher. As a result, the Nifty reclaimed its long-term moving average, the 200 DEMA, and ended at 23,742.90. The index has now entered its second week of consolidation, and current indicators suggest that this trend is likely to persist.Shrikant Chouhan, Kotak SecuritiesTechnically, after a short-term correction, the index has formed a reversal formation, which is largely positive. For traders, 23,550/78000 would act as a key support zone. Above this level, the Nifty/Sensex could move up to 23,900–24,000/79000-79200. On the other hand, if it falls below 23,550/78,000, the uptrend would be vulnerable. Below this point, traders may prefer to exit their long positions.Also Read: Stocks to buy in 2025: 66 ideas from top brokerages for your new year portfolio(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)