Goenka Infos

For years, Foreign Institutional Investors (FIIs) were considered the backbone of the Indian equity market . Heavy FII inflows often meant bull markets , rising valuations, and global confidence in India’s growth story. That assumption is now outdated. In 2025 , India has witnessed one of the largest FII outflows in its market history , estimated at nearly ₹1.6 trillion , and unlike previous cycles, FIIs are not returning the following year . This break from historical patterns signals a deeper structural problem. Let’s examine the real reasons — not narratives, not excuses. 1. Currency Depreciation Is Destroying Real Returns FIIs invest in foreign currency (USD) , but earn returns in Indian Rupees (INR) . What matters to them is dollar-adjusted returns , not headline Nifty CAGR . The harsh math: India’s rupee has depreciated at ~3.5% annually over the last two decades. Even a 12–13% equity return gets significantly eroded after: Currency depreciation Taxes Hedging costs In many case...

  Gold holds a unique psychological, cultural, and financial position in India. With gold prices rising over 60% in the last year , a natural question arises: Does this surge in gold prices create a real wealth effect that boosts consumption and economic growth? The short, uncomfortable answer: mostly no . Let’s break this down logically, without emotion or nostalgia. 1. India’s Gold Wealth Is Massive — Bigger Than Its GDP According to estimates by Morgan Stanley , Indian households collectively hold around: 34,600 tonnes of gold Valued at roughly $5 trillion This is higher than India’s nominal GDP , which is about $4.1 trillion ( IMF estimates ) In global terms: India accounts for ~26% of global gold demand China accounts for ~28% Together, India and China drive more than half of global gold consumption On paper, this looks like enormous household wealth. But wealth on paper is not the same as usable economic wealth . 2. Most Household Gold Is Not a Financial Asset Here lies th...