USD/INR: Indian Rupee Strengthens on Crude Oil Price Drop, FPI Inflows, and Dollar Weakness on May 5

The Indian rupee appreciated sharply against the US dollar on Monday, tracking strength in other Asian currencies. The local currency was supported by several positive developments, including foreign fund inflows, a sharp drop in global crude oil prices, and weakness in the US dollar.

At the interbank foreign exchange market, the rupee opened at 84.45, touched a low of 84.47, and strengthened to a high of 84.18, gaining 39 paise from its previous close. This comes after the rupee touched a seven-month high of 83.77 last Friday before pulling back due to suspected RBI intervention.

Let’s look at the key factors supporting the rupee’s recent rise.

Fall in Crude Oil Prices

Brent crude oil fell nearly 4%, while WTI crude dropped over 3.6%. Brent futures were trading at US$59.24 per barrel. The decline was triggered by OPEC’s decision to increase oil output, adding 411,000 barrels per day to global supply in June.

This drop in oil prices is positive for India, which imports most of its crude. A lower oil import bill helps the rupee strengthen.

Strong Foreign Portfolio Inflows

Foreign Portfolio Investors (FPIs) turned net buyers in April after 3 months of selling. They invested ₹4,223 crore into Indian stocks in April, including ₹2,769 crore just last Friday.

This fresh interest from foreign investors has improved demand for Indian assets, strengthening the rupee. The newly issued 10-year government bond also saw good demand, supporting further inflows.

Weak US Dollar

The US dollar weakened due to expectations of an interest rate cut by the US Federal Reserve. The dollar index, which tracks the dollar against six major currencies, was down to 99.69.

The euro and the yen also gained against the dollar, adding to the overall weakness in the greenback. A weak dollar usually supports emerging market currencies like the rupee.

Strong Indian Economic Data

India’s Goods and Services Tax (GST) collections hit a record high of ₹2.37 lakh crore in April, up 12.6% year-on-year. This shows strong economic activity.

Also, India’s foreign exchange reserves increased by US$1.98 billion to reach US$688.13 billion, the eighth straight week of growth. These factors boosted confidence in India’s economic stability.

Stock Market Rally

Indian equity markets have been on a strong upward trend, with Sensex and Nifty 50 rising around 7% in the past month. This rally, driven by easing global tensions and strong US jobs data, has attracted foreign investors and further supported the rupee.

Conclusion

The Indian rupee’s recent strength is backed by falling oil prices, rising foreign inflows, a weak US dollar, and strong economic data. Robust stock market performance and steady forex reserves have further lifted market confidence in the currency. This upward trend reflects growing investor optimism and India’s improving macroeconomic stability.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

RBI Imposes ₹2.5 Crore Penalty on 5 Banks for Rule Violations

The Reserve Bank of India (RBI) has fined 5 major Indian banks a total of ₹2.5 crore for failing to follow its regulatory rules. The action was taken after the central bank found problems in areas like cybersecurity, KYC (Know Your Customer) procedures, and customer service. The affected banks are ICICI Bank, Axis Bank, Bank of Baroda, IDBI Bank, and Bank of Maharashtra.

ICICI Bank Fined the Most

ICICI Bank received the highest penalty of ₹97.8 lakh. The RBI said the bank failed to report a cybersecurity incident quickly and didn’t have a proper alert system for certain accounts. It also charged late fees on credit cards without sending statements to customers.

Axis Bank and Bank of Maharashtra Also Penalised

Axis Bank was fined ₹29.6 lakh. The bank was found using internal office accounts to process transactions that were not authorised, violating RBI rules.

Bank of Maharashtra had to pay ₹31.8 lakh in penalties for two reasons: opening many savings accounts using Aadhaar-based e-KYC without following guidelines and overcharging interest on some Kisan Credit Card loans. This went against the government’s Interest Subvention Scheme, which aims to give farmers loans at lower rates.

Bank of Baroda and IDBI Bank Fined Too

Bank of Baroda was fined ₹61.4 lakh. The RBI found the bank did not regularly credit interest on frozen or inactive savings accounts. Also, it allowed insurance companies to give non-cash rewards to employees who sold insurance, which is against the rules.

IDBI Bank also faced a fine, although it was smaller, related to earlier non-compliance with KYC norms.

How RBI Took Action

The penalties came after the RBI conducted a detailed inspection of the banks’ operations through the Statutory Inspection for Supervisory Evaluation (ISE). Before imposing the fines, RBI sent show-cause notices, and carefully reviewed the banks’ written and oral replies.

Conclusion

These penalties are meant to push banks to follow rules more strictly. The RBI made it clear that these actions will not affect customers’ accounts or transactions.

Read more on: Nifty Bank Index Dips: Kotak, Axis, SBI Drag While IDFC First, Federal Bank Lead Gains

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Best Fertiliser Stocks in May 2025- Coromandel International, Chambal Fertilisers, and Others Based on 5Y CAGR

The Indian fertiliser industry is set to grow at a CAGR of 4.2%, as per various research reports. It is expected to reach a size of ₹1.38 lakh crore by 2032. In 2023, the market was valued at ₹94,210 crore, driven by rising agricultural demand and government policies.

India is the second-largest producer of fruits and vegetables globally, supporting sector growth. Government initiatives like PM-KISAN and PM-Garib Kalyan Yojana boost farmer liquidity, and the focus on self-sufficiency has reduced fertiliser imports. The country is a leader in nano-fertilisers and organic farming.

Despite challenges like climate change, initiatives like the National Mission for Sustainable Agriculture aim to ensure agricultural sustainability.

Top Fertiliser Stocks Based on 5Y CAGR

Company 5Y Profit Var (%) Debt/Equity
Coromandel International 10.9 0.07
Chambal Fertilisers 11.59 0.01
Mangalore Chemicals 35.26 0.79
Nova Agritech 42.08 0.28
Aries Agro 18.79 0.13

List of Best Fertiliser Companies in India

 

  1. Coromandel International Ltd

Coromandel International Ltd is a leading agri-solutions provider in India, offering fertilisers, crop protection, bio-pesticides, and specialty nutrients. It holds a dominant market share in phosphatic and organic fertilisers, with strong retail and export presence. The company operates 18 manufacturing facilities and is expanding via backward integration, new product launches, and acquisitions like Dhaksha (drone tech). It’s also diversifying into specialty chemicals and CDMO opportunities.

Key Metrics:

  • EPS: ₹70.14
  • ROE: 17.49%

2. Chambal Fertilisers& Chemicals Ltd

Chambal Fertilisers & Chemicals Ltd is a leading Urea producer in India, with ~13% market share. It also trades in other fertilisers and agri-inputs and operates a phosphoric acid JV in Morocco. The company is expanding into technical ammonium nitrate and strengthening its crop protection portfolio.

Key Metrics:

  • EPS: ₹51.44
  • ROE: 24.58%

  1. Mangalore Chemicals and Fertilizers Ltd (MCF)

Mangalore Chemicals and Fertilizers Ltd a Zuari Fertilisers subsidiary, manufactures and sells Urea, DAP, SSP, and plant protection products. Its revenue is almost evenly split between Urea and non-Urea products. A merger with Paradeep Phosphates is underway to create a top fertiliser companies in India.

Key Metrics:

  • EPS: ₹9.46
  • ROE: 13.88%

  1. Nova Agri Tech Ltd

Nova Agri Tech Ltd, incorporated in 2007, is an agri-input company offering crop nutrition, soil health, and protection products. It sells through ~6,200 active dealers across 16 Indian states and Nepal. The firm also leverages agri-tech innovations like drones and soil scanners for precision farming support.

Key Metrics:

  • EPS: ₹1.83
    ROE: 12.2%

  1. Aries Agro Ltd

Aries Agro Ltd, incorporated in 1969, is a market leader in chelated micronutrients and customised plant and animal nutrition. It is one of the best fertiliser manufacturing companies in India. With 134 brands and a vast distribution network, it operates domestically and exports to multiple countries. It uses technology, organic products, and expansion strategies to fuel growth.

Key Metrics:

  • EPS: ₹10.9
  • ROE: 12.9%

Top Fertiliser Comapanies Ranked by Number of Working Capital Days

Working capital days (WC days) represent the number of days a company takes to turn its working capital into revenue. This metric is essential for assessing the liquidity and operational efficiency of a business. Below are the top fertilizer companies ranked by their working capital days:

Company WC Days
Coromandel International 43.7
Chambal Fertilisers 14.26
Mangalore Chemicals 61.66
Nova Agritech 208.57
Aries Agro 129.94

Top Fertiliser Comapanies Ranked by P/E Ratio

The Price-to-Earnings (P/E) ratio is a key financial metric used to evaluate a company’s valuation. A high P/E ratio typically indicates that a company’s stock is overvalued. Conversely, a low P/E ratio may suggest that the company is undervalued or experiencing lower growth expectations.

Here is a ranking of the top fertilizer companies based on their P/E ratios:

Company P/E
Coromandel International 36.41
Chambal Fertilisers 17.14
Mangalore Chemicals 20.44
Nova Agritech 14.45
Aries Agro 12.31

Conclusion

India’s fertiliser sector is expanding rapidly, driven by rising demand, policy support, and innovation. Companies like Coromandel, Chambal, and Nova Agri Tech show strong financials and growth potential, making them attractive picks for long-term investors. Metrics like CAGR, ROE, and P/E help assess their investment worthiness.

Read more on: Best Water Stocks in May 2025: Denta Water, Va Tech Wabag & More Based on 5-Yr CAGR, Market Cap

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

Netweb Technologies Share Price Jumps Over 13% After Strong FY25 Results

Netweb Technologies share price was up 13.17% and was trading at 1,609.00 at 2:15 PM on Monday. The company reported a 45% year-on-year rise in net profit to ₹429.9 million. This growth was mainly driven by high demand from enterprise and government clients, especially in the artificial intelligence (AI) systems segment.

Revenue and Operating Growth

Netweb’s operating income increased by 55.9% to ₹4.15 billion in the fourth quarter. Its operating EBITDA also rose by 47.9% to ₹597.7 million, showing strong performance across the board. For the full financial year, the company’s income reached a record ₹11.58 billion, up by 57.4% from the previous year. Net profit for the full year jumped 50.8% to ₹1.14 billion, and diluted earnings per share (EPS) rose nearly 46% to ₹20.24.

AI Segment Shows Rapid Growth

The company’s AI systems segment grew 112% year-on-year in FY25 and now contributes 14.8% of total revenue. Netweb also launched a new platform, Skylus.ai, in FY25. This GPU-based system is built to simplify AI deployment and better manage GPU resources—highlighting the company’s commitment to AI innovation.

Other Key Highlights

Netweb recommended a final dividend of ₹2.5 per share, with a payout ratio of 12.4%, pending shareholder approval. The company also successfully implemented SAP S/4 HANA to improve its operational control and received ₹59.4 million under the Indian government’s PLI Scheme 2.0 for IT hardware.

The company ended FY25 in a strong financial position, with negative net debt of ₹1.62 billion and an order book worth ₹3.25 billion.

Conclusion

Netweb Technologies has shown impressive growth in FY25, supported by strong AI demand and solid financials. With continued innovation and a robust order book, the company is well-positioned for further success.

Read more on: Brightcom Group Says CEO, CFO Appointments on Hold Until Court Clearance

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

 

Swiggy Share Price Rises Nearly 7% as ‘Bolt’ Expands to 500 Cities

Swiggy share price was up 6.73% at 12.36 PM and was trading at ₹325.85. It had earlier announced that its 10-minute delivery service, ‘Bolt’, is now available in over 500 cities across India. This growth comes within just 6 months of its launch in October 2024. The expansion is seen as a big achievement in fast food delivery, helping boost investor confidence.

What’s Behind the Surge in Swiggy Share Price?

The stock jump was also supported by rival company Eternal (formerly Zomato) exiting its own 10-minute delivery service, ‘Quick’. As per news reports, Zomato’s CEO Deepinder Goyal, said that restaurant infrastructure was not ready for such fast delivery, and customer experience was inconsistent.

At 12:40 PM, Eternal (Zomato) share price was up 2.31% and was trading at ₹239.70.

Strong Demand Across India

Swiggy said that Bolt already handles over 1 in 10 orders on its platform. The demand is high not just in big metro cities but also in smaller Tier 2 and Tier 3 towns. With over 45,000 restaurant partners, Bolt offers popular quick-serve brands like McDonald’s. The service uses smart backend systems, a 2 km delivery radius, and a curated menu to ensure speed and quality.

Bolt’s Growing Impact

As food delivery becomes more competitive, Swiggy’s timely expansion of Bolt has positioned it as a clear leader in ultra-fast service. The ability to scale so rapidly also shows the company’s deep reach in logistics and strong partner network. Bolt’s focus on efficiency and customer satisfaction may help Swiggy turn around its falling stock performance.

Conclusion

With its main rival stepping away and strong consumer demand, Swiggy’s Bolt is racing ahead in the quick delivery segment. The stock’s jump reflects investor excitement, even though it has dropped over 41% in 2025 so far. The 10-minute delivery space still holds promise—especially when backed by solid operations and wide restaurant reach.

Read more on: Brightcom Group Says CEO, CFO Appointments on Hold Until Court Clearance

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

Finnifty Holds Steady in Early May 2025 with Marginal Gains

The Nifty Financial Services Index (Finnifty) started May 2025 with a slight uptick. As of May 5, the index showed a month-to-date gain of 0.20%, indicating stable investor sentiment following strong rallies in March and April.

Current Levels and Movements in Finnifty

 On May 5, Finnifty opened at 26,172.70 and reached a high of 26,287.30 during the day. The index has been trading in a daily range of 26,108.65 to 26,287.30. Its 52-week high currently stands at 26,819.10, while the 52-week low is 20,457.90. The Year-To-Date (YTD) return is a solid 11.29%, reflecting positive momentum in the financial sector.

Key Gainers Supporting the Finnifty Index

Several major financial stocks have contributed to Finnifty’s mild rise this month.

  • HDFC Bank (₹1,939.90) added 12.71 points to the index.

These gains suggest that strong private lenders and NBFCs are helping maintain momentum, even amid broader market caution.

Top Drags on the Index

 However, the gains were partially offset by some key laggards:

  • Kotak Mahindra Bank (₹2,075.20) was the biggest drag, pulling the index down by 15.23 points.
  • SBI (₹792.65) and Axis Bank (₹1,177.10) also slipped, contributing -4.11 and -1.54 points respectively.
  • ICICI Lombard and ICICI Prudential had smaller negative impacts of -0.80 and -0.19 points.

 This mixed performance highlights that while private players are rising, public sector and insurance firms are facing selling pressure.

Historical Monthly Trends

May has historically been a positive month for Finnifty, with an average return of 2.06%. So far in May 2025, the returns are lower than average but remain positive, indicating cautious optimism among investors. The previous two months, March and April, saw sharp gains of 8.88% and 4.14%, setting high expectations.

Investor Outlook: Mixed Signals Ahead

Investor sentiment in May appears cautious as recent earnings from key banking players show a mixed picture. State Bank of India (SBI) reported a 10% YoY drop in net profit for Q4FY25, down to ₹18,642.59 crore from ₹20,698.35 crore last year. Kotak Mahindra Bank also posted weaker numbers. Its consolidated profit fell 7.5% YoY to ₹4,933 crore, while the standalone net profit dropped 14.5% to ₹3,551.74 crore.

These results from major public and private sector lenders suggest that while core lending activities remain strong, profitability is under pressure. Going forward, market movements will likely depend on upcoming results, global trends, and interest rate expectations.

Conclusion

 While May began on a slower note compared to previous months, Finnifty continues to show resilience. Led by strong performances in private financial stocks, the index could regain pace as the month progresses.

Read more on: Stocks to Watch Today, Monday, May 5, 2025: DMart, SBI, Kotak, Tata Motors in Focus

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

Godrej Properties’ Share Price in Focus as Company is Targeting ₹32,500 Crore Sales in FY26

Godrej Properties’ share price declined marginally at 10:36 AM and was trading at ₹2,241. One of India’s top real estate developers, it has set a target of achieving ₹32,500 crore in sales bookings in FY26. This comes after a record-breaking ₹29,444 crore in sales bookings in FY25 — a 31% jump from ₹22,527 crore in the previous year.

Strong Market Confidence

Despite global economic challenges, the company believes that housing demand will remain strong. The target for FY25 was ₹27,500 crore, but the company exceeded it comfortably.

With inventory in current under-construction projects and a strong pipeline of new launches across major cities, the company is confident of meeting — or even exceeding — its FY26 goal.

Godrej Properties’ FY25 Financial Performance

For the full financial year, the company’s net profit rose by a significant 93% to ₹1,399.89 crore from ₹725.27 crore in the previous year. Total income also grew to ₹6,967.05 crore, up from ₹4,334.22 crore.

Godrej Properties’ Q4 Performance Slows

 In the March 2025 quarter, however, the company saw a 19% decline in consolidated net profit, which fell to ₹381.99 crore from ₹471.26 crore a year earlier. The drop was mainly due to higher tax expenses and losses in some joint ventures. Despite this, total income during the quarter rose to ₹2,681.06 crore from ₹1,914.82 crore.

Future Plans

 The board has approved raising up to ₹2,000 crore through the issue of non-convertible debentures and other debt securities. This funding will support project development and business growth.

Wider Presence

Godrej Properties mainly develops group housing projects in Delhi-NCR, Mumbai, Pune, Bengaluru, and Hyderabad. It also has a presence in smaller cities for plotted developments.

Conclusion

Backed by strong housing demand and a solid project pipeline, Godrej Properties is aiming for higher sales and growth in FY26, despite recent quarterly challenges.

Read more on: Tata Motors Shareholders to Vote Tomorrow, May 6 on Demerger to Spin off PV, EV, JLR Into New Listed Entity

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

Indian Bank Share Price in Focus After Posting A 32% Jump in Q4 Profit

Indian Bank share price was up 2.93% and was trading at ₹574.45 at 10:15 AM. The government-owned lender based in Chennai has reported a 32% rise in net profit for the January–March 2025 quarter.

The bank earned ₹2,956 crore in profit, up from ₹2,247 crore in the same quarter last year. This growth was mainly due to a decline in bad loans and higher core income.

Income Growth of Indian Bank

The bank’s total income increased to ₹18,599 crore, compared to ₹16,887 crore in the previous year’s March quarter. Interest income also rose to ₹15,856 crore, from ₹14,624 crore last year. The Net Interest Income (NII) stood at ₹6,389 crore, up from ₹6,015 crore.

Improved Asset Quality

Indian Bank improved its asset quality during the quarter. The Gross Non-Performing Assets (NPAs) dropped to 3.09% from 3.95% last year. The Net NPAs fell to 0.19%, down from 0.43%. The Provision Coverage Ratio (PCR) — the percentage of funds set aside to cover bad loans — rose to 98.10% from 96.34%.

Strong Annual Performance

For the full financial year 2024–25, the bank posted a 35% increase in net profit, earning ₹10,918 crore compared to ₹8,063 crore last year. Total income for the year rose to ₹71,226 crore, while NII increased to ₹25,176 crore. The Net Interest Margin (NIM) stood at 3.51%.

Dividend on Indian Bank Share

The bank’s capital adequacy ratio improved to 17.94%, up from 16.44%. The board recommended a dividend of 16.25 paise per equity share (face value ₹10), subject to shareholder approval.

Fundraising Plans

To support growth, the bank plans to raise up to ₹7,000 crore this financial year. This includes ₹5,000 crore in equity (via QIP, rights issue, or both) and ₹2,000 crore through bonds, including Basel III compliant options.

Conclusion

Indian Bank has shown strong financial growth with improved profits, reduced bad loans, and solid future fundraising plans, setting a positive tone for the year ahead.

Read more on: Tata Motors Shareholders to Vote Tomorrow, May 6 on Demerger to Spin off PV, EV, JLR Into New Listed Entity

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

 

 

 

WAVES Summit 2025: PM Highlights India’s Creator Economy As A New Engine of Growth

India is giving a big boost to its creator economy. At the first World Audio Visual and Entertainment Summit (WAVES 2025) in Mumbai, Prime Minister Narendra Modi said creators are driving India’s “Orange Economy” and helping build the nation’s global soft power.

To support this, the government has announced a US$1 billion fund to help creators improve skills, upgrade production quality, and reach global markets. It is also building the Indian Institute of Creative Technology (IICT) with ₹391 crore to train talent in digital and creative fields.

Potential of India’s Creator Economy

India’s creator economy is growing fast. A BCG report says that creators already influence over US$350 billion in yearly spending. This number could cross US$1 trillion by 2030. Right now, the sector earns US$20–25 billion directly, which may rise to US$100–125 billion by decade’s end.

There are around 2 to 2.5 million active creators in India with over 1,000 followers, but only about 8–10% earn money consistently. Most are in short-form content like YouTube Shorts, Instagram Reels, and Moj, focusing on topics like comedy, beauty, and fashion.

Rising Role of Influencers in Creator Economy

Brands are investing more in creators. Influencer marketing is expected to grow 25% in 2024, reaching ₹2,344 crore, and up to ₹3,375 crore by 2026. Many brands now prefer nano and micro influencers (with 100–100,000 followers) because they are affordable and effective.

Platforms like WAVES Bazaar, a new global e-marketplace, are also being launched to connect Indian creators with international buyers.

Still a Side Hustle for Many

Even with rapid growth, 73% of creators work less than 10 hours a week on content. Only 30% make enough from brand deals to work full-time.

Conclusion

India’s creator economy is no longer just a hobby space. With government backing and global ambition, it is being shaped into a powerful industry — one that could play a key role in India’s economic and cultural rise.

Read more on: NSE Launches Nifty Waves Index to Track Media and Entertainment Sector

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

How Are New Indices Encouraging Passive Investment in Indian Stock Market?

With the stock market witnessing increasing retail participation, the Indian stock exchanges are launching more indices. Just last Friday, the National Stock Exchange (NSE) launched a new index called the NSE Waves Index, which includes 43 media and entertainment companies.

So far in FY26, BSE and NSE have already launched 3 indices. In FY25, they launched a total of 41 indices – more than 3 every month. In comparison, only 7 indices were launched in FY23 and FY24, and none by BSE during that period.

Why So Many New Indices?

As per news reports, this increase in new indices is mainly driven by mutual fund houses. These fund houses want to offer passive investment options that track specific themes or sectors, like the media-focused NSE Waves Index. These themes attract investors and allow fund houses to launch new types of funds.

Exchanges also benefit from this trend. They earn a small percentage of the money collected by mutual fund schemes that are based on their indices.

SEBI’s Rules and Their Impact on Passive Investment Options

Another reason for the increase in indices is a rule by SEBI (Securities and Exchange Board of India). In 2022, SEBI introduced categorisation norms that stopped mutual funds from launching multiple schemes with similar investment goals under different names.

Now, fund houses must clearly place their schemes into one of 36 SEBI-defined categories. This pushed them to come up with new investment themes and strategies, especially in the passive fund space.

Conclusion

India’s mutual fund industry is growing fast, and the stock exchanges are helping by launching new indices. These changes offer more options to investors and support the growth of passive investing.

Read more on: Best Mutual Fund SIP Plan for May 2025: Motilal Oswal Midcap, ICIC Prud and More

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.