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Vanguard cuts ETF fees in Europe: what it means for passive investing globally
Market News - May 31, 2025

The Great Gold Shift: Indians Embrace ETFs as Jewellery Demand Plummets

The Great Gold Shift: Indians Embrace ETFs as Jewellery Demand Plummets

 A 170% Surge in Gold ETF Investments Reflects a New Era of Smart, Digital Gold Ownership in India

Introduction

In a dramatic change to long-standing traditions, Indian investors are rapidly moving away from physical gold jewellery and embracing gold Exchange Traded Funds (ETFs) as their preferred way to own the precious metal. The first quarter of 2025 has witnessed a staggering 170% year-on-year surge in gold investment demand, led almost entirely by robust inflows into gold ETFs. Meanwhile, jewellery purchases have slumped by 25% in volume, as record-high prices and changing investment priorities reshape the market landscape.

The Numbers Behind the Shift

Gold Investment Demand Skyrockets
Gold investment demand in India hit a record 552 tonnes in Q1 2025, representing a 170% increase over the previous year. This increase was primarily driven by renewed interest in gold ETFs, which recorded their strongest quarterly inflows in three years.
Globally, gold-backed ETF holdings rose by 226 tonnes, bringing the total to 3,445 tonnes—a clear signal that investors worldwide are seeking the safety and liquidity of paper gold.
Jewellery Demand Takes a Hit
Despite the surge in investment demand, jewellery consumption in India declined significantly.
Jewellery sales fell by 25% in volume, as consumers balked at record-high prices—gold crossed ₹93,217 per 10 grams in early 2025. Even as the value of jewellery sales remained resilient due to higher prices, the shift in consumer behaviour is unmistakable: Indians are buying less jewellery and more gold in financial form.

Why Are Indians Choosing Gold ETFs?

Convenience and Liquidity
Gold ETFs offer a simple and accessible way to invest in gold.
Unlike physical jewellery, which requires storage, insurance, and carries making charges, ETFs provide instant liquidity and can be bought and sold with the click of a button. This convenience is particularly appealing to tech-savvy investors and those looking for flexible investment options.
Better Returns and Tax Efficiency
Investing in gold through ETFs is also more tax-efficient than buying physical gold. There are no making charges, and returns are often more attractive after taxes. Additionally, gold ETFs benefit from compounding, allowing investors to grow their wealth over time without the headaches of storing and securing physical gold.
A Safe Haven in Uncertain Times
The rise in gold ETF investments is driven by increased market uncertainty, geopolitical conflicts, and a declining US dollar. Gold’s reputation as a safe-haven asset has been strengthened by the current conditions, boosting its attractiveness to investors.
Central banks, including the Reserve Bank of India (RBI), continue to add gold to their reserves, further boosting confidence in the metal’s long-term value.

The Global and Domestic Context

Global Trends Mirror India’s Shift
This trend is not unique to India. Globally, gold-backed ETF assets rose by 226 tonnes in Q1 2025, led predominantly by Europe and Asia.
In Europe, expectations of interest rate cuts by the European Central Bank (ECB) drove inflows, while in Asia, trade tensions and a weaker US dollar prompted investors to seek safety in gold.
RBI’s Strategic Approach
The RBI has revised its approach by boosting its gold reserves to an all-time high of 879.6 tonnes, accounting for approximately 11.7% of India’s foreign exchange reserves.
While the central bank’s buying pace has slowed, its continued accumulation of gold reflects a strategic emphasis on diversifying reserves and reducing reliance on US assets.

The Impact on the Gold Market

Record Prices and Changing Consumption Patterns
Record-high gold prices have fundamentally altered consumption patterns. Consumers are either deferring jewellery purchases, buying smaller quantities, or exchanging old jewellery for new. The shift is especially pronounced among younger investors, who are more comfortable with digital investment platforms and less attached to traditional forms of gold ownership.
The Rise of Digital Gold
Beyond ETFs, digital gold products are also gaining traction. These platforms allow investors to buy, sell, and even gift gold in digital form, further eroding the dominance of physical jewellery. The trend is expected to continue as more Indians become comfortable with fintech solutions and seek out flexible, modern ways to invest in gold.

Conclusion

The first quarter of 2025 signifies a landmark moment for gold ownership in India.
A 170% surge in gold ETF investments and a 25% drop in jewellery demand signal a profound shift in how Indians view and invest in gold. Convenience, liquidity, and the desire for safe-haven assets are driving this change, as record prices and global uncertainty reshape the market. With central banks and retail investors alike embracing gold in financial form, the future of gold ownership in India is digital, smart, and more accessible than ever before.

 

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Avanti Feeds Shares Jump 8% After Strong Q4 FY25 Results and Whopping 900% Dividend

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Nuvama Declares ₹69 Dividend Per Share, Record Date Near
Market News - May 30, 2025

Nuvama Declares ₹69 Dividend Per Share, Record Date Near

Nuvama Declares ₹69 Dividend Per Share, Record Date Near

 

Stock market headlines were created when Nuvama Wealth Management Limited, a prominent player in India’s financial services industry and a component of the BSE 500 index, announced a dividend of ₹69 per equity share.
This substantial dividend payout has generated a positive buzz among investors, especially those focused on income generation and long-term value investing.
As per the company’s official communication, the record date for determining eligible shareholders is scheduled for next week, urging market participants to check their holdings and make investment decisions accordingly.

A Bold Dividend Move Reflecting Strong Financials

The ₹69 dividend declaration stands out in a period where many companies are adopting a cautious stance on capital allocation. Nuvama’s announcement signals a strong financial footing, consistent cash flows, and a shareholder-first approach.
The high dividend is being interpreted as a sign of confidence by the company’s board, likely backed by a stable earnings outlook and strong liquidity reserves. This decision is aligned with the firm’s strategy of returning surplus capital to shareholders while maintaining a sustainable growth trajectory.

Understanding the Record Date and Investor Eligibility

The record date, expected to fall in the first week of June 2025, is a critical cutoff point. Only those investors who are officially recorded as shareholders by the end of that day will be entitled to receive the declared dividend.
Because the Indian stock market operates on a T+1 settlement cycle, any investor wishing to be eligible must purchase or hold shares at least one business day before the record date.
For example, if the record date is June 6, 2025, investors must buy the stock by June 5, 2025, to ensure their names appear in the company’s shareholder list in time.

What This Means for Shareholders

This dividend declaration translates into a direct cash reward for shareholders. For investors holding 100 shares, the ₹69 dividend means a payout of ₹6,900, which will be credited to their bank accounts linked to their demat accounts, post approval and processing.
Such a high dividend also serves as a confidence booster and enhances the stock’s appeal, particularly for those who rely on dividend income. It adds a layer of stability to portfolios, especially in a market that has been volatile in recent months.

Performance Behind the Payout

The significant dividend is supported by Nuvama’s consistent performance over the previous three quarters. The company has seen steady expansion in its wealth management and advisory segments, with improved margins and a growing client base.
Its digital platforms have seen increasing traction, while partnerships and product innovations have also contributed to revenue diversification. Low leverage and prudent cost control have kept the company’s balance sheet healthy, allowing for generous capital distribution.

Market Response and Analyst Takeaways

Following the dividend announcement, Nuvama’s stock witnessed a moderate uptrend with increased buying interest. Traders and long-term investors took positions to benefit from the high yield ahead of the record date.
Analysts tracking the stock believe this move will enhance shareholder loyalty and possibly trigger a re-rating of the stock, especially if the company maintains this trend in future periods.
A leading brokerage firm noted, “Nuvama’s dividend declaration signals management’s positive outlook and discipline in capital deployment. It stands out in the sector, offering both stability and returns.”

Dividend History and Future Policy

Historically, Nuvama has maintained a conservative yet consistent approach toward dividend payments. However, the current announcement marks one of its most substantial payouts to date, indicating stronger-than-usual performance or a change in capital return philosophy.
Investors will be watching closely to see if this is a one-off announcement or part of a broader trend. A more regular or growing dividend policy could make the stock particularly attractive for those building long-term income portfolios.

Strategic Vision and Long-Term Plans

Apart from the dividend, Nuvama is expected to continue investing in its core businesses. The company has plans to expand its tech infrastructure, grow its advisory network, and enhance personalized client services.
The management has emphasized striking a balance between rewarding shareholders and reinvesting for future growth, suggesting a sustainable approach to capital allocation.

Conclusion

Nuvama Wealth Management Limited has established a solid precedent in the Indian financial services industry by announcing a ₹69 dividend per share. Investors hoping to profit should make sure their stocks are in place as the record date draws near. Supported by strong financial results and an optimistic outlook, Nuvama is reaffirming its standing as a reliable and lucrative investment option.

 

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GRM Overseas Delivers 115% Returns in One Year; Q4 Profit Stands at Rs 20.47 Crore

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