India’s stock market saw strong momentum in the week ending May 30, 2025, backed by a robust GDP growth report and vibrant IPO activity. New fund offers by leading asset management companies provide fresh investment opportunities amid sustained investor interest.
India’s capital markets closed the week on a strong note, buoyed by robust economic data and heightened activity in both primary and secondary markets. According to the Ministry of Statistics and Programme Implementation (MoSPI), the country recorded a 7.4% GDP growth in the January–March quarter of financial year 2024–25. This marked the highest quarterly growth in the past year, driven by strong domestic consumption, increased government infrastructure spending, and a revival across manufacturing and services sectors.
The manufacturing sector showed notable improvements, with enhanced industrial output and capacity utilization, while the services sector experienced steady expansion, particularly in finance, real estate, and professional services. Infrastructure projects and capital expenditure by the government further supported economic momentum, and agriculture remained stable, bolstering rural demand.
The equity market saw heightened activity, especially in the IPO space. Belrise Industries and Borana Weaves made impressive debuts, listing at premiums of 11.11% and 12.5%, respectively. Investor enthusiasm was particularly evident in the oversubscription of several IPOs. Prostarm Info led with an extraordinary 96.68 times oversubscription, followed by Scoda Tubes Info at 57.37 times. Aegis Vopak Terminals and Schloss Bangalore also attracted strong investor demand, with oversubscriptions of 2.20 times and 4.72 times, respectively. These figures reflect robust retail and institutional investor participation, underscoring confidence in emerging companies across sectors like manufacturing, logistics, and technology.
In addition to IPOs, asset management companies (AMCs) expanded their offerings with several New Fund Offers (NFOs). Motilal Oswal AMC launched the Services Growth Direct Plan targeting India’s expanding services economy. ICICI AMC introduced the Nifty 200 Quality 30 Index Growth Plan, focusing on a curated set of large-cap companies with strong fundamentals. Nippon India AMC rolled out the BSE Sensex Next 30 Index Growth Plan, designed to capture potential in the next tier of large-cap firms. Union AMC and Unifi AMC launched innovative fund-of-funds and flexible allocation plans, respectively, aiming to provide investors with steady returns and diversified exposure across market capitalizations.
These developments signify a dynamic and evolving investment landscape in India, with strong macroeconomic fundamentals and growing investor confidence. Market analysts expect continued momentum driven by sustained economic growth, increased corporate earnings, and new investment products catering to a wide range of risk appetites.
