June 28, 2025: Share Market – India recorded a significant current account surplus of USD 13.5 billion (1.3% of GDP) in the fourth quarter of fiscal year 2025, marking its first surplus in four quarters and highlighting the country’s resilient economic fundamentals. This milestone was driven by record-high services exports and strong remittance inflows, signaling an improved external sector position.

For the entire fiscal year FY25, India’s current account deficit narrowed to just 0.6% of GDP, down from 0.7% in FY24, reflecting healthier trade dynamics and better foreign exchange management. This positive shift is expected to strengthen the Indian rupee, boost investor confidence, and reduce dependence on foreign capital.

Meanwhile, the Indian capital markets are also showing signs of optimism. Recent Initial Public Offerings (IPOs) have witnessed strong investor participation, reflecting a bullish market sentiment. Indogulf Cropsciences Limited saw a subscription rate of 0.98 times, while HDB Financial Services Limited—an HDFC Bank subsidiary—was oversubscribed by 17.65 times. Sambhv Steel Tubes Limited attracted an overwhelming response with a 30.33 times subscription, highlighting robust demand across agriculture, financial services, and manufacturing sectors.

The mutual fund industry in India is riding this wave of positivity with a slew of New Fund Offers (NFOs) launched by prominent Asset Management Companies (AMCs). These NFOs cater to a variety of investor needs and focus areas, such as the Groww Nifty India Internet ETF FoF targeting the digital economy, SBI AMC’s momentum-driven Nifty200 Momentum 30 Index Fund, and Union AMC’s Low Duration Fund designed for short-term stability. Other notable launches include Kotak AMC’s Nifty 200 Quality 30 Fund, Bajaj Finserv AMC’s Small Cap Fund, Zerodha AMC’s Silver ETF FoF for precious metals exposure, and Mahindra AMC’s Banking & Financial Services Fund aligned with the sector’s growth.

Industry experts believe that this combination of a strong external sector, positive IPO traction, and innovative mutual fund offerings positions India well for sustained economic growth and increased resilience amid global uncertainties. With a strengthening rupee and expanding investor appetite, India continues to be an attractive destination for both domestic and international investors.