News

This category will talk of the news of the day and our analysis of the event.

Electric vehicles (EVs) are gaining serious momentum in India, and the IPO space is heating up once again—this time with Ather Energy taking the spotlight. Known for its sleek electric scooters and strong focus on technology, Ather is poised to become the second pure-play Indian EV manufacturer to go public, following Ola Electric’s market debut last year.

The IPO comprises a fresh issue of ₹2,626 crore along with an offer for sale (OFS) of up to 1.1 crore shares, which is expected to fetch around ₹354.76 crore at the upper end of the price band. Together, this brings the total issue size to approximately ₹2,980.76 crore, marking a notable reduction from the company’s earlier plan to raise ₹4,000 crore. Source: Moneycontrol

Ather Energy IPO Details

Ather Energy has officially set a price band of ₹304 to ₹321 per share for its IPO. The offer will be open for subscription from April 28 to April 30, with the anchor book opening earlier on April 25. The basis of allotment will be finalized on May 2, followed by refunds and credit of equity shares by May 5. The stock is set to be listed on the Indian stock exchanges on May 6.

In the Ather Energy IPO, at least 75% of the shares are allocated for qualified institutional buyers (QIBs), while up to 15% are set aside for non-institutional investors (NIIs). Retail investors will have access to no more than 10% of the total offer. Additionally, up to 1,00,000 equity shares have been reserved for employees, who will also benefit from a discount of ₹30 per share. Source: Livemint

Offer Price₹304 to ₹321 per share
Face Value₹1 per share
Opening Date28 April 2025
Closing Date30 March 2025
Total Issue Size (in Shares)9,28.58, 599 
Total Issue Size (in ₹)₹ 2980.76 Cr
Issue Type Book Built Issue IPO
Lot Size46 Shares
Listing atBSE, NSE
Source: Chittorgarh.com

Company Overview

Ather Energy, headquartered in Bengaluru, is an Indian electric two-wheeler manufacturer established in 2013. It designs and produces high-performance electric scooters like the 450 Apex, 450X, 450S, and the family-oriented Rizta.  

Ather has also established Ather Grid, a widespread EV charging infrastructure across India. Committed to sustainability, Ather aims to revolutionize urban commuting through innovative and eco-friendly mobility solutions, evident in their product development and manufacturing practices.

Company Performance and Financials

For the nine months ending December 2024, the company posted:

  • Revenue of ₹1,578.90 crore, up from ₹1,230.40 crore in the same period a year ago.
  • A net loss of ₹577.90 crore, significantly down from the previous year’s loss of ₹776.40 crore.

Source: Moneycontrol

These numbers show that while Ather is still in the loss-making phase, it has been able to grow revenue and narrow losses, both positive signs as the company works toward profitability.

SWOT Analysis of Ather Energy

STRENGTHSWEAKNESSES
High-performance, feature-rich electric scooters with a focus on technology and design.
Perceived as a premium and aspirational EV brand in India.
Provides a crucial advantage and reduces range anxiety for owners.
In-house R&D and manufacturing allow greater control over quality and innovation.


Relatively high price point Limits affordability for a large segment of the Indian market.
While expanding, their presence is still concentrated in major urban centers.
Dependence on imported components can impact costs and supply chain stability.
Like many early-stage EV companies, achieving consistent profitability can be a hurdle.
OPPORTUNITIESTHREATS
Growing competition from both established two-wheeler manufacturers and emerging EV startups. Fluctuations in raw material prices can significantly affect production costs and pricing strategies. Uncertainties in government policies and subsidies can influence consumer demand and operational planning.Growing competition from both established two-wheeler manufacturers and emerging EV startups. Fluctuations in raw material prices can significantly affect production costs and pricing strategies. 
Uncertainties in government policies and subsidies can influence consumer demand and operational planning.

Key Managers of the IPO

To ensure a smooth and credible public issue, Ather Energy has enlisted the services of some of the top names in investment banking. The book running lead managers for this IPO include:

  • Axis Capital
  • HSBC Securities and Capital Markets (India)
  • JM Financial
  • Nomura Financial Advisory and Securities (India)

Valuation Cuts and Downsizing

When Ather Energy filed its draft red herring prospectus (DRHP) back in September 2024, the company was aiming for a $2.5 billion valuation. Since then, due to changing market conditions and investor sentiment, the figure has been cut down to around $2.4 billion, reflecting a post-issue valuation of ₹11,956 crore.

Some market analysts see this as a red flag, as the last-minute downsizing and multiple valuation trims may signal a rush to list the company. However, it remains to be seen whether investors share this sentiment or look past it for the long-term EV growth story. Source: Moneycontrol

Why Ather’s IPO Stands Out

Ather’s IPO is significant because 2025 has been slow for IPOs so far. After a blockbuster 2024 where Indian companies raised ₹1.6 lakh crore through public issues, only nine companies have launched IPOs in 2025, raising just ₹15,722 crore, according to Prime Database.

As per market analysts, while secondary markets are now showing signs of a rally and foreign institutional investors (FIIs) are returning, most companies are taking a cautious approach. They prefer to wait and watch how Ather’s issue performs before launching their offerings.

The Second Major EV IPO in India

When Ather lists on the stock exchanges, it will follow in the footsteps of Ola Electric, which went public last year. This makes Ather only the second pure-play electric vehicle company in India to offer shares to the public—a big milestone for India’s green mobility push.

Ather has made a name for itself in the urban EV space with scooters like the Ather 450X, which combines performance with connectivity features like onboard navigation, over-the-air updates, and a mobile app for real-time tracking. The company is also focusing on expanding its charging infrastructure, which is crucial for the mass adoption of electric vehicles (EVs).

What Investors Should Watch Out For

Before you decide whether to invest, here are a few important points to keep in mind:

1. Valuation Sensitivity

The multiple valuation cuts could mean that the company is under pressure to list. While that’s not always a negative, it does warrant caution.

2. EV Market Potential

India’s EV market is poised for exponential growth, and Ather is one of the few players offering a strong product and expanding presence. Investors with a long-term horizon may find this as an entry point.

3. Profitability Timeline

Like many startups, Ather is still loss-making. Potential investors must understand when and how the company plans to achieve profitability.

4. Market Response

How Ather’s IPO performs could set the tone for future listings in 2025. A strong response may attract more companies to the market, while a weak one could prompt others to delay.

Final Thoughts

Ather Energy’s IPO comes at an interesting time. On the one hand, it represents India’s growing shift toward electric vehicles, offering retail investors a chance to ride that wave. On the other hand, the valuation trims and IPO downsizing suggest some caution is warranted.

It is always best to do your own research or speak to a certified investment advisor before making any final decisions.

The Dollar’s Decline

As of April 2025, the U.S. Dollar Index (DXY) has dropped to its lowest level since early 2022, now trading below 98. This sharp depreciation is more than a currency movement—it’s a signal of shifting global power dynamics and economic uncertainty. Since the dollar underpins global trade and finance, its value affects everything from crude oil to emerging market bonds. 

Source: CNBC, Reuters, Economic Times

How Is the World Reacting?

1. Emerging Markets Gain Breathing Room

A weaker dollar eases debt servicing for emerging markets. Many countries, especially in Africa and Latin America, borrow in dollars. A weaker greenback lowers their repayment burden.

For example:

  • Brazil’s real strengthened nearly 4% in April.
  • South Africa saw increased capital inflows as dollar carry trades lost shine.

2. Currency Appreciation Elsewhere

As the dollar slumps, other currencies naturally rise in relative value. 

Currency Movement vs USD (April 2025)  

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Source: CNBC, Reuters, Economic Times.

A stronger yen or euro reduces export competitiveness for Japan and the eurozone, but lowers import costs, helping to tame inflation.

3. Gold, Silver, and Commodities Rally

With the dollar losing value, investors often turn to hard assets.

  • Gold has risen 8% in the past month.
  • Silver rallied sharply, hitting a six-month high.

Commodities priced in USD become cheaper for foreign buyers, boosting demand and prices.

Unpacking the Causes: What’s Driving the Dollar Down?

1. Erosion of Federal Reserve Credibility

One of the most cited reasons behind the greenback’s weakness is political interference in monetary policy. President Donald Trump’s repeated criticisms of Federal Reserve Chair Jerome Powell—and what many perceive as pressure on the Fed to keep rates low for political gain—have raised concerns about the autonomy of America’s central bank.

This weakening of institutional independence has rattled global investors. Historically, the Fed’s credibility has served as a cornerstone of global monetary stability. Undermining that trust sends a negative signal to bondholders and international financial institutions, contributing to capital outflows from dollar-denominated assets.

Investor impact: Since January 2025, foreign holdings of U.S. Treasury bonds have dropped by over $450 billion (Source: U.S. Treasury Department).

2. Trade Wars and Tariff Uncertainty

Trump’s reintroduction of broad-based tariffs, particularly against the EU and China, has destabilized global trade once again. The U.S. has imposed tariffs of up to 25% on several categories of imported goods, prompting retaliatory tariffs from the European Union and China.

These trade policies erode investor confidence in the U.S. economy and reduce the global appetite for the dollar as a reserve currency. Additionally, it increases costs for American manufacturers and consumers, slowing economic activity and weighing down the dollar.

3. Federal Reserve’s Dovish Stance Amid Global Tightening

While many central banks, including the ECB and the Bank of Japan, are holding interest rates steady or tightening to control inflation, the Fed has adopted a more dovish stance. A 50-basis-point cut in the Federal Funds Rate was implemented in January 2025, aiming to cushion the domestic economy from the impact of tariffs and declining exports.

This interest rate differential makes U.S. assets less attractive compared to those of other currencies, leading investors to shift capital toward regions with higher real yields, which further depresses the value of the dollar.

4. Shift Toward Gold and Safe Havens

The dollar’s fall has triggered a surge in demand for non-dollar assets. According to the IMF, global central banks are gradually reducing their reliance on the dollar. In 2024, the dollar accounted for just 58.4% of global reserves—the lowest in decades.

Gold prices have reached a record $3,500 per ounce as investors seek shelter from inflation and currency volatility. Silver has also spiked, supported by both industrial demand and its status as a monetary hedge.

Gold vs. Dollar: Gold has risen nearly 30% year-to-date, while the dollar has weakened by over 5.5% (Source: Investing.com, Statista).

Global Repercussions: More Than Just America’s Problem 

CountryCurrency MovementKey Impact
U.S.Dollar ↓ 5.5%Weaker trade position, Fed under scrutiny
EurozoneEuro ↑ 6.2%Exports hit, inflation down
JapanYen ↑ 4.7%Export sector squeezed
IndiaRupee ↔Export boost, import cost up, FII inflow ↑
BrazilReal ↑ 3.9%Capital inflows , export risk ↑

Sources: CNBC, Reuters, Investing.com, Statista, Business Standard

Europe: Stronger Euro, Tougher Exports

A weaker dollar naturally boosts the euro, which has surged past 1.12 USD/EUR. While this strengthens European consumers’ purchasing power, it hurts exports. German automakers, French wine exporters, and Italian machinery manufacturers all face reduced price competitiveness in their largest export market—the U.S.

Volkswagen and BMW have warned of reduced sales in North America due to pricing pressure from the strong euro.

Japan: A Tightrope Walk for the Yen

Japan is in a similar situation. The yen has appreciated to ¥129/USD, its strongest in 18 months. This has hurt Japanese exports, particularly in sectors such as semiconductors and consumer electronics, just as global demand was beginning to rebound following the COVID-19 pandemic. The Bank of Japan is under pressure to intervene or risk a deflationary hit.

Emerging Markets: The Double-Edged Sword

For countries like Brazil, Turkey, and South Africa, a weaker dollar initially appears beneficial—it lowers the cost of servicing dollar-denominated debt. However, the flip side is that their exports become less competitive if their currencies appreciate too rapidly. Moreover, sudden inflows of “hot money” seeking returns in emerging markets can create asset bubbles and financial instability.

Brazil’s Bovespa Index has risen over 12% in 2025, but the central bank warns of overheating.

India’s Economic Landscape: A Balancing Act

India sits at a unique intersection. According to CNBC-TV18, the rupee’s gains are being capped due to the RBI’s intervention to avoid excessive volatility.

Here’s how the dollar’s decline could play out across different sectors: 

Export Growth Potential

Sectors like IT services, which earn in dollars, could see higher rupee revenues. Indian pharmaceutical and textile exporters may also benefit from improved competitiveness in the U.S. market. However, the benefit is nuanced—any rupee appreciation would eventually erode these gains.

Rising Oil Prices and Inflation Pressures

Crude oil, priced in dollars, becomes more expensive when the dollar’s value weakens. India, which imports over 85% of its oil requirements, faces more costly imports. This could contribute to retail inflation and affect household budgets.

Investment Flows and Stock Market Volatility

Foreign institutional investors (FIIs) may increase their allocations to Indian equities amid a weakening dollar, particularly in sectors related to consumption and infrastructure. However, this inflow is often volatile and can reverse quickly with shifts in global sentiment.  

What It Means for Investors

  • Global Portfolio Investors: Currency Risk Is Real. Gains in dollar terms may shrink when converted back to stronger home currencies.
  • US-Based Investors: Diversification into foreign stocks, gold, and tangible assets becomes more attractive.
  • Indian Investors: Exposure to US markets might be less profitable in INR terms; consider hedging currency risk.

Watching the World’s Reserve Currency Shift

The weakening dollar is a mirror reflecting global shifts in economic leadership, investor confidence, and monetary autonomy. As central banks and governments adjust to this new normal, the implications go far beyond currency exchange rates—they touch jobs, inflation, trade, and geopolitical stability.

If you’re in India, Europe, Japan, or any country tied to the global financial system, the dollar’s fall isn’t just an American story —it’s yours too.

On April 21, 2025, shares of Housing and Urban Development Corporation Limited (HUDCO) closed at ₹234.90, marking a 2.62% increase from the previous close of ₹228.90. This uptick followed the Central Board of Direct Taxes (CBDT) approving HUDCO’s request to raise ₹5,000 crore through the issuance of Zero-Coupon Bonds.​

What Are Zero-Coupon Bonds?

Zero-Coupon Bonds are debt instruments sold at a discount to their face value and do not pay periodic interest. Instead, investors receive the full face value at maturity. This structure allows issuers like HUDCO to raise funds without immediate interest obligations, providing flexibility in managing cash flows.​

Understanding the Fundraising Mechanism & the CBDT Approval

HUDCO plans to raise ₹5,000 crore through zero-coupon bonds, for which the approval of the CBDT is crucial, as it ensures the tax-exempt status of these bonds, making them more attractive to investors. Source: The Mint

The CBDT, under the Ministry of Finance, issued Notification No. S.O. 1744(E) dated April 17, 2025, permitting HUDCO to issue five lakh Zero Coupon Bonds with a tenure of ten years and one month. These bonds will be redeemed at ₹5,000 each upon maturity. ​

HUDCO’s Financial Strategy

HUDCO has outlined a clear roadmap for increasing its funding capabilities in FY 2025–26. Earlier in April, the company’s board approved a substantial annual borrowing plan amounting to ₹65,000 crore. This figure reflects a significant scale-up compared to previous years, indicating HUDCO’s commitment to fueling its housing and urban development agenda more aggressively.

To facilitate this enhanced borrowing, HUDCO also raised its overall borrowing ceiling from ₹1.5 lakh crore to ₹2.5 lakh crore. This step isn’t just a procedural update—it signals a stronger push towards long-term financing of projects that align with national development priorities, including affordable housing, smart cities, and infrastructure initiatives across states.

In effect, this move gives HUDCO more flexibility to maneuver, allowing it to tap into various funding channels as opportunities arise. The higher limit also provides flexibility to respond quickly to emerging project needs or shifts in the credit environment without waiting for further board approvals. Source: The Mint

Strategic Borrowing Plans

In the current financial year, HUDCO has already been executing a multi-pronged approach to funding. In addition to the ₹5,000 crore being raised through zero-coupon bonds, the company has been working on mobilizing up to ₹23,000 crore by the end of March 2024. This capital is being raised through a mix of instruments, including:

  • Medium-term loans
  • Short-term credit
  • Taxable bonds

The goal here is diversification — not relying solely on one kind of borrowing product, but tapping into multiple sources to optimize interest rates, repayment schedules, and risk exposure. As of December 2023, HUDCO had already raised approximately ₹12,000 crore out of its ₹23,000 crore target, indicating good traction with lenders and investors.

This blend of borrowing tools enables HUDCO to maintain a balance between its immediate liquidity needs and long-term funding requirements. It also reflects a disciplined approach to financial planning, allowing the institution to meet current commitments while being prepared for future, larger-scale investments. Source: Business Finance

Market Response and Share Performance

The market responded positively to the CBDT’s approval, with HUDCO’s share price rising by 2.5%. This increase reflects investor confidence in the company’s financial strategies and its role in supporting government-backed housing and infrastructure initiatives.

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Source: NSE

Over the past five years, HUDCO shares have delivered a robust return of over 990% to investors. In the last one year alone, the stock has gained more than 20%. Despite this long-term growth, the stock has slipped slightly in 2025, down by over 1% year-to-date.

According to NSE data, HUDCO touched its 52-week high of ₹353.95 on July 12, 2024, and hit a 52-week low of ₹158.90 on March 3, 2025. More recently, the stock has shown strong momentum, rising 15.83% over the past month and nearly 9% in just the last five trading sessions. As of Monday’s market close, HUDCO’s market capitalisation stood at ₹47,024.63 crore.

Implications of the Fundraising

The green signal from the CBDT to raise ₹5,000 crore via zero-coupon bonds marks an essential milestone in HUDCO’s financing roadmap. Zero-coupon bonds provide a tax-efficient means of raising funds, particularly when backed by CBDT approval. They are issued at a discount and redeemed at face value, which lowers upfront costs for the company and enhances its appeal for investors who can benefit from tax exemptions under Section 10(15)(iv)(h) of the Income Tax Act.

From HUDCO’s perspective, this infusion of ₹5,000 crore serves as additional working capital to support the increasing demand for housing finance and urban development. Whether it’s infrastructure projects in tier-2 and tier-3 cities or state-led housing initiatives, this funding will be used to scale operations and accelerate project timelines.

More broadly, this move aligns with HUDCO’s goal of strengthening its capital structure, reducing borrowing costs, and expanding its lending capacity. It is also a reflection of the government’s broader focus on infrastructure-led growth, making HUDCO a key enabler in achieving these targets. Source: The Mint

Conclusion

HUDCO’s recent share price increase reflects investor confidence following the CBDT’s approval for a significant capital raise. The company’s proactive financial strategies, including the issuance of Zero Coupon Bonds and the expansion of its borrowing limits, position it to effectively support housing and urban development initiatives in the coming years.

FAQs

  1. Why did HUDCO’s share price rise recently?

    HUDCO’s share price rose by 2.5% after the Central Board of Direct Taxes (CBDT) approved its plan to raise ₹5,000 crore via zero-coupon bonds. The market responded positively to this development, viewing it as a strategic move to strengthen the company’s funding base for housing and infrastructure projects.

  2. What are zero-coupon bonds, and why is HUDCO using them?

    Zero-coupon bonds are debt instruments issued at a discount and redeemed at face value on maturity, with no periodic interest payments. HUDCO is utilizing them to raise capital efficiently, offering investors a tax-exempt return, thanks to the CBDT’s approval under Section 10(15)(iv)(h) of the Income Tax Act.

  3. What is the significance of HUDCO increasing its borrowing limit?

    HUDCO’s board recently increased its overall borrowing limit from ₹1.5 lakh crore to ₹2.5 lakh crore. This move provides the company with greater financial flexibility to raise funds as needed. It indicates its intent to significantly scale up support for housing and urban infrastructure initiatives in the coming fiscal years.

  4. How much does HUDCO plan to raise in FY 2025–26?

    For FY 2025–26, HUDCO has approved a fundraising plan of ₹65,000 crore. This is part of a broader strategy to enhance its financial capacity and meet the growing demand for housing finance and infrastructure funding across India.

The primary index, NIFTY50, reached an intraday high of 24,190 on April 21, 2025, as it reclaimed the 24,000 level for the first time since January 2025. While the upward trend in the primary indices indicates growing trust in the Indian stock market, another parameter reinforcing this positive pattern is the return of Foreign Institutional Investors (FIIs).

Foreign Institutional Investors (FIIs) pumped an investment of Rs. 14,670 crore in the Indian cash market over the previous three trading sessions as of 21st April 2025. What is driving this comeback, and how will it likely affect the investors? Let’s decode.

Understanding the Shift in FII Sentiment:

The Indian stock market recently experienced a strong resurgence of foreign capital, with Foreign Institutional Investors (FIIs) injecting Rs. 14,670 crore into the cash market between April 15th and 17th, 2025. This marks a sharp shift from the previous trend, where Foreign Portfolio Investors (FPIs), a category that includes Foreign Institutional Investors (FIIs), were net sellers for nine straight trading sessions as of April 16, 2025, pulling out a total of Rs. 38,992 crore.

Here, net sellers mean they were selling more shares than they were buying, signaling reduced confidence or a cautious outlook. In contrast, being net buyers, as seen now, shows renewed optimism and a willingness to invest more in Indian equities.

Previously, the last major instance of FII buying occurred on March 27th, when they invested approximately Rs. 11,111 crore. The recent inflow not only breaks the selling streak but also exceeds the previous high, indicating stronger conviction among foreign investors. This sudden turnaround suggests a significant shift in how global investors view India’s market potential. It means growing confidence and reassessing the risks and opportunities associated with investing in the country.

So, what’s driving this change in sentiment?

Drivers Of Changing Market Sentiment:

  1. Weakening US Dollar:

The US Dollar Index (DXY), which measures the dollar’s strength against other major currencies, recently dropped to around 100. A weaker dollar has several important implications for global investors.

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Source: Money Control

When the dollar weakens, returns from non-dollar assets, like Indian stocks, become more attractive to foreign investors. This is because when these investors eventually convert their investment gains back into their home currency, they receive a better exchange rate, which enhances their risk-adjusted returns. In simple terms, a weaker dollar increases their purchasing power in India and boosts their potential profits.

Additionally, a falling dollar often signals easier monetary conditions globally. This encourages investors to shift their capital to emerging markets, such as India, which offer relatively higher growth and better yields. So, the weakening dollar is acting as a direct incentive for foreign investors to park more money in Indian equities.

  1. India’s Strong Growth Outlook

Another major reason behind the recent rise in FII activity is India’s solid economic growth outlook. At a time when many major global economies, such as the US and China, are expected to post slower growth, India is projected to continue growing steadily. Estimates suggest the Indian economy could expand by around 6% in FY26, despite global headwinds. Plus, recent economic forecasts from key global institutions further reflect this continued confidence in India’s economy:

InstitutionProjected Growth RateYear
World Bank6.7%FY26 & FY27
International Monetary Fund (IMF)6.5%2025 & 2026
Asian Development Bank (ADB)6.7%FY26
Fitch Ratings6.4%FY26

For FIIs, this signals strong potential for long-term capital appreciation. When an economy grows steadily, it generally translates to higher corporate earnings, improved business confidence, and better stock market performance, all of which make Indian equities more appealing.

  1. Easing Global Trade Tensions:

Tariffs and trade barriers can disrupt supply chains, hinder economic growth, and add uncertainty, which many investors prefer to avoid. The recent tariff announcements by the US brought these elements in major economies in large numbers. However, the United States’ decision to delay the imposition of new tariffs by 90 days has helped calm nerves in the global markets.

With this temporary relief, markets are now breathing a little easier. Emerging markets, such as India, benefit from such developments, as global investors feel more confident about the broader economic outlook. The perception of reduced geopolitical risk and greater global stability encouraged foreign investors to revisit markets they might have avoided during times of tension. (Source: Mint)

  1. Optimism Around Q4FY25 Corporate Earnings:

While there was initial caution around the earnings performance for the fourth quarter of FY25, largely due to subdued consumer demand and challenges in specific sectors, recent developments have led to a more positive market tone. Several companies have begun reporting their Q4 FY25 results, and early indicators from key sectors are showing encouraging trends. For instance-

CompanyParameterGrowth (%)
HDFC BankNet Profit6.7% 
ICICI BankStandalone Net Profit (YoY)18% 
InfosysRevenue from Operations (YoY)7.9% 
WiproNet Profit (YoY)25.93

These results from large-cap firms in sectors like banking and IT are shaping expectations for a more stable earnings outlook. As more companies release their quarterly numbers, the overall picture of corporate performance is becoming clearer. This earnings momentum is being closely tracked by investors, including foreign institutional investors (FIIs), as they assess the market’s potential over the coming quarters.

  1. RBI’s Pro-Growth Monetary Policy:

Alongside earnings optimism, the Reserve Bank of India’s recent rate cut (the REPO rate was reduced to 6% in April 2025) has provided a significant boost to investor confidence. Lower REPO rates and resulting decreased borrowing costs are also expected to stimulate demand across various sectors, including housing, autos, infrastructure, and small businesses.

For foreign investors, this shift toward monetary easing sends a strong pro-growth signal. It indicates that India’s central bank is focused on supporting economic momentum, making Indian assets more appealing from a risk-reward perspective.

  1. Other Underlying Factors: 
  • India’s relatively lower inflation and stable crude oil prices are offering better risk-adjusted returns compared to some other emerging markets. It is why some Foreign Institutional Investors (FIIs) are reallocating funds from different markets, such as China, to India, drawn by better growth prospects and economic stability.
  • Foreign Institutional Investors (FIIs) and domestic investors are showing interest in sectors driven by domestic consumption, including financial services, telecom, aviation, cement, select auto stocks, and healthcare.
  • The US is slowing down its tightening of monetary policy, which is helping improve global liquidity and making markets like India more attractive to investors.
  • Policy support, such as the government’s Production-Linked Incentive (PLI) schemes and the China+1 strategy for supply chain diversification, is also contributing to sector-specific investment interest.
  • Foreign Institutional Investors (FIIs) are selectively investing in mid-cap companies with strong fundamentals and long-term growth potential.

Bottomline:

The historical trend of FII investment in India reveals a market that remains sensitive to global economic conditions, with notable inflows and outflows during events like the global financial crisis and the COVID-19 pandemic. While FII activity contributes significantly to liquidity, shapes market sentiment, and supports economic development, it also introduces an element of volatility that investors must account for.

In this context, aligning portfolios with broader institutional trends may help reflect prevailing market momentum; however, it is equally important to factor in individual risk appetite, investment horizon, and diversification goals before finalizing any investment decision.

In today’s increasingly interconnected world, Indian investors are expanding their horizons to explore opportunities beyond domestic markets. One such avenue gaining traction is UCITS—Undertakings for Collective Investment in Transferable Securities. 

These European-domiciled funds offer a structured, transparent, and tax-efficient pathway to global markets, making them a smart choice for those seeking international diversification without regulatory complications.

They are especially popular in Europe, South America, and Asia among investors who prefer diversified unit trusts over investing in a single public company. This approach helps reduce risk while offering broader market exposure within their local or international portfolios. Source: LiveMint/ Investopedia

Understanding UCITS: What Are They?

UCITS are investment funds governed by European Union regulations, enabling investors to access a diverse range of assets, including stocks, bonds, and other securities, within a single vehicle. Think of them as mutual funds or ETFs built for cross-border distribution across Europe and, often, worldwide.

They provide a transparent, tax-efficient, and liquid way to invest globally, while helping investors avoid some of the complications associated with direct investments in U.S. markets.

Key Features of UCITS
What are UCITSRegulated Investment Instruments domiciled in Europe.
Diversified and professionally managed portfolios.
Traded on the London Stock Exchange, among others.
Where are  UCITS listedLondon Stock Exchange (LSE), Euronext (Paris, Amsterdam), XETRA (Germany), Borsa Italiana (Italy), SIX Swiss Exchange (Switzerland)
Why UCITSAvoids U.S. estate tax: Applies to non-residents with assets above $60,000 and can go up to 40%

Reinvestment-friendly: Offers reinvestment option, unlike many US ETFs that pay taxable dividends

Boosts NAV: Reinvested income enhances net asset value over time, aiding long-term compounding

How to Invest in UCITS?Resident Indians and NRIs are eligible.

Who Can Invest?Resident Indians and NRIs are eligible

Taxation for Resident IndiansSTCG (<2 years): Taxed as per income slab

LTCG (>2 years): Taxed at 12.5%

Popular UCITS ETFs (Listed on LSE)VUAA – Vanguard S&P 500

EQQQ – Invesco Nasdaq 100

IWDA – iShares MSCI World

CBUK – iShares China Tech

Source: LiveMint

Let’s understand the key features in detail:

  • Diversification: UCITS funds invest in a broad range of assets, reducing the risk associated with investing in a single security.
  • Liquidity: These funds are traded on major stock exchanges, enabling investors to buy or sell units with ease.
  • Transparency: UCITS regulations require regular disclosure of holdings, fees, and performance.
  • Investor Protection: Strict regulatory standards ensure a high level of investor protection.

Why Should Indian Investors Consider UCITS?

1. Tax Efficiency:

Investing directly in U.S. securities can expose Indian investors to the U.S. estate tax, which can be as high as 40% on assets exceeding $60,000 for non-resident, non-citizens. UCITS funds, being domiciled in Europe (primarily Ireland or Luxembourg), help investors sidestep this issue, as they are not considered U.S. assets.

2. Global Diversification:

UCITS funds offer exposure to various geographies, sectors, and asset classes. This broad-based exposure is ideal for investors looking to diversify their portfolios without managing multiple holdings.

3. Regulatory Oversight:

European regulations governing UCITS enforce robust risk controls and transparency, ensuring a high level of investor protection.

4. Liquidity and Portability:

Due to their standardized structure, UCITS funds are typically liquid and easily transferable, allowing investors to enter and exit positions with relative ease.

Where Are UCITS ETFs Listed?

UCITS ETFs are primarily listed on major European stock exchanges, including:
  • London Stock Exchange (LSE): Hosts hundreds of UCITS ETFs spanning multiple asset classes and global regions.
    Euronext (Paris and Amsterdam): Offers a wide array of fund options tailored to both local and global investors.
    XETRA (Germany): A key platform for trading UCITS ETFs.
    Borsa Italiana (Italy): Provides access to various UCITS funds.
    SIX Swiss Exchange (Switzerland): Lists numerous UCITS ETFs for investors.

Beyond Europe, select UCITS ETFs are available on platforms such as the Hong Kong Stock Exchange (HKEX) and Singapore Exchange (SGX), broadening access for regional investors.

How to Invest in UCITS ETFs from India

Investing in UCITS ETFs is a relatively straightforward process, though it requires coordination between your broker and bank under India’s Liberalized Remittance Scheme (LRS). Here’s a step-by-step guide:

1. Open an Account with a Global Broker:

Choose a platform that provides access to international exchanges like the LSE or Euronext. Popular options include:

  • Interactive Brokers
    PhillipCapital
    Zinc Money

These brokers enable Indian investors to trade directly in global ETFs, including those listed under the UCITS framework.

2. Remit Funds from Your Indian Bank:

Once your account is active, initiate a fund transfer under the LRS, which permits remittances of up to $250,000 per financial year. The transfer typically takes one to two working days, depending on the bank. Source: LiveMint

3. Trade the UCITS ETF of Your Choice:

Once the funds reach your brokerage account, you can start investing in any UCITS ETF listed on supported exchanges. Trades are executed and settled through your brokerage account, just like domestic stock transactions.

If you have all your documents in place and live in a major city like Mumbai, Delhi, or Bengaluru, the account can be opened the same day. Platforms like Zinc Money offer both online onboarding and in-person consultations in major Indian cities, along with personalized investment advisory services.

Popular UCITS ETFs for Indian Investors

A wide variety of UCITS ETFs are available to investors, many of which are listed on the London Stock Exchange (LSE) and offer diversified exposure to global markets. Some popular options include:

  • VUAA (Vanguard S&P 500 ETF): Tracks 500 of the largest publicly listed U.S. companies.
    EQQU (Invesco Nasdaq 100 ETF): Focuses on leading non-financial firms listed on the Nasdaq.
    IWDA (iShares MSCI World ETF): Includes over 1,500 companies across developed markets.
    CBUK (iShares China Tech ETF): Provides targeted access to China’s rapidly growing technology sector. Source: LiveMint

Minimum Investment Amount

There’s technically no minimum threshold to invest in UCITS ETFs. However, a sensible starting point is around ₹25,000. This baseline helps ensure that transaction costs are justified and that investors can fully benefit from the diversification and tax advantages that UCITS funds offer.

Taxation and Charges

Capital Gains Tax:

  • Short-Term Capital Gains (STCG): For units held for less than two years, gains are taxed at the investor’s marginal income tax rate.
  • Long-Term Capital Gains (LTCG): For holdings beyond two years, gains attract a 12.5% tax rate.

Forex-Related Charges:

Currency conversion and remittance costs vary across platforms. For instance, Zinc Money levies a 1% forex markup plus a flat fee of ₹350 per transaction and works with banks such as RBL to streamline international transfers.

Dividend Reinvestment:

Many U.S.-listed ETFs distribute dividends by default, with limited or no reinvestment options, and those payouts are often subject to withholding tax, depending on the investor’s country of residence. 

UCITS funds, on the other hand, often offer accumulation share classes, where earnings are automatically reinvested into the fund. This reinvestment can significantly enhance long-term growth through NAV appreciation, making UCITS a more efficient vehicle for compounding wealth.

Conclusion

For Indian investors seeking to diversify their portfolios and access global markets, UCITS provides a structured, efficient, and tax-friendly investment route. With benefits like diversification, regulatory oversight, and ease of access, they are an increasingly compelling choice for those seeking international exposure without regulatory complications.

Before investing, it is essential to consult with financial advisors and understand the associated risks and fees. With the right approach, UCITS can be a valuable addition to your investment strategy, enabling you to achieve your financial objectives.

FAQs

  1. What are UCITS?

    UCITS (Undertakings for Collective Investment in Transferable Securities) are regulated investment funds established in the European Union, offering investors protection and diversification. 

  2. How are UCITS regulated?

    They adhere to strict EU regulations governing fund structure, eligible assets, risk management, and disclosure, thereby ensuring transparency and investor safeguards. 

  3. What types of assets do UCITS invest in? 

    UCITS primarily invest in transferable securities, such as stocks and bonds, but can also include money market instruments and other eligible assets, subject to strict limits.

  4. Why should Indian investors consider UCITS?

    UCITS offer diversification beyond Indian markets, access to global investment strategies, and the security of a well-regulated framework.

  5. How can Indian investors access UCITS?

    Indian investors can invest in UCITS either through local mutual fund companies that offer feeder funds (Feeder funds are investment vehicles that pool capital from investors and channel it into a larger, central fund called a master fund) or by using international investment platforms, as long as they comply with Indian rules and guidelines.

  6. What are the potential risks of investing in UCITS?

    Risks include market fluctuations, currency exchange rate movements, and the specific risks associated with the underlying assets held by the UCITS fund.

Over 8.4 tons of pesticide-laced temple flowers are dumped daily into the Ganges.
Marigolds and roses—once offered with folded hands and whispered prayers—rot by the riverside, their chemical dyes silently poisoning the holy water.

It’s a harsh contradiction. What begins as devotion ends as pollution. But one man chose to do something about it. He asked a powerful question: What if the same flowers that polluted our rivers could help clean them instead?

That spark of an idea blossomed into a revolutionary brand—one that not only protects sacred rivers but also empowers women and redefines sustainability and spiritual responsibility.

Are you curious how they turned sacred rituals into a sustainable revolution? Read on

Story of Phool Storytelling 00 02

On the Banks of Faith

Let’s rewind to a winter morning in 2015. It was Makara Sankranti, and Ankit Agarwal took his visiting friend to the bustling holy ghats of Ganga in Kanpur. Devotees dipped in the sacred river, offered flowers in prayer, and bottled the blessed water to take home. 

Amidst the sacred rituals and spiritual energy, one image quietly stood out — heaps of temple flowers decomposing by the riverside, their chemical-laden colors slowly bleeding into the water.

That morning, the mission became clear: to honor the sacredness of these flowers and safeguard the purity of our rivers.

Story of Phool Storytelling 00 03

Firmly with a Purpose

The question stuck with Ankit, a young techie from Kanpur, long after his friend had flown back.

And instead of turning away, he turned his helplessness into hope. Phool (Hindi for flower) was born, not as a company but as a calling.

The mission was simple yet powerful: rescue discarded temple flowers and reimagine them into soulful, sustainable, and scalable products.

Story of Phool Storytelling 00 04

The Blooming Business Model

The business model of Phool is rooted in circular economy principles. They collect floral waste from temples and transform it into incense sticks, organic vermicompost, essential oils, soaps, biodegradable packaging, and vegan leather (Fleather™).

And here’s the heart— every product is crafted by women from vulnerable communities, many of whom were once manual scavengers. 

Phool’s products aren’t mass-produced.. They’re designed in labs, perfected in R&D, and brought to life by human hands.

Their  R&D department is the brain and soul of the company. Their obsession isn’t just selling but imagining what else a flower can become.

Story of Phool Storytelling 00 05

With Purpose

Phool’s revenue model isn’t about profit but impact. A box of 40–45 handcrafted incense sticks costs ₹165.

Yes, the margins are healthy. But customers aren’t just buying a stick of incense. They’re buying into a cause of clean rivers, empowered women, and second chances. 

Story of Phool Storytelling 00 06

That Smells Like Fresh Ideas

Phool doesn’t shout from rooftops—they bloom on screens. Their digital-first marketing strategy integrates social media, search engine optimization, and trend-led content.

Phool’s content speaks the language of its urban, environmentally-conscious audience, from soothing unboxing videos to behind-the-scenes shots of women artisans at work.

A campaign that made waves? #PhoolWaliHoli, where Phool launched a line of Natural Gulaal made from 100% pure flower extracts to encourage chemical-free celebrations.

Story of Phool Storytelling 00 07

Mitti, Seed Paper & Other Earth-Loving Products

One of Phool’s proudest products is Mitti—a vermicompost made using enzymes and minerals, completely free of chemicals and carbon footprints. It’s a nutrient shot for your soil, all created through biological processes.

Then there’s the genius of seed paper packaging—inked with vegetable dyes and embedded with Tulsi seeds. Once your incense sticks are done, plant the box in the soil, water it, and a holy basil plant grows.

Even better? Scan the QR code on the box, upload your growing plant’s pic, and get exclusive discounts.

Story of Phool Storytelling 00 08

That Don’t Smell Like Roses

Phool’s journey hasn’t been scent-sational from the start. Collecting temple waste is challenging and unpredictable.

Over 800 million metric tonnes of floral waste are dumped into the Ganga annually. But Phool needs these flowers fresh to create incense.

And that means building a robust, timely, and efficient supply chain with temples across cities. 

They’ve cracked part of the puzzle. But scaling it is still a daily hustle.

Story of Phool Storytelling 00 09

Fame and A Few Flower Crowns

Phool’s flower revolution caught the attention of investors and institutions alike.

Backed by $9.4 million in funding across four rounds, support from Bollywood actress Alia Bhatt, and guidance from IIT Kanpur, the brand has firmly planted its roots.

Their current revenue is estimated at $15 million, with a 130% YoY growth over the past two years. Phool is no longer a startup story but a global movement in the making.

Story of Phool Storytelling 00 10

Intent, Celebrated Worldwide

Phool’s journey of purpose and innovation has turned heads and the tide. Over the years, the brand has raked in a bouquet of prestigious awards and global recognition. 

From receiving the United Nations Young Leaders Award for Sustainable Development Goals to the Momentum for Change Award at COP 2018, Phool has consistently been acknowledged for its commitment to sustainability. 

In 2020, it was honored with the Asia Sustainability Award in Hong Kong, followed by the BIRAC Innovator Award 2021, presented by Venkaiah Naidu.

The brand has earned nods from global forums like the Wharton India Economic Forum, Falling Walls in Berlin, and Alquity’s Transforming Lives Awards in London, solidifying its place on the world stage.

Story of Phool Storytelling 00 11

For This Phool Force?

Phool has expanded operations across India, and global ambitions aren’t far behind. They’re eyeing countries like Bangladesh and Nepal, constantly innovating with vegan materials, conscious gifting kits, and carbon-neutral home products.

But what makes Phool magical is that they’re not just cleaning rivers or saving flowers—they’re redefining what devotion looks like in the 21st century.

So next time you light a Phool incense stick, remember—you’re not just smelling jasmine or lavender. You’re part of a revolution that blooms with every breath.

Major cities of India were embracing the new fleet of urban mobility with BluSmart in Gurugram. However, the Indian startup that distinguished itself by operating an all-electric fleet in the ride-hailing market has recently faced a significant crisis, marked by the suspension of its cab booking services in major cities, including Delhi-NCR, Mumbai, and Bengaluru, as of April 17, 2025. This disruption is primarily attributed to the alleged financial misconduct and governance failures at Gensol Engineering. But was it the only reason? What led to the decline in this startup’s performance? Let’s decode.

Overview Of BluSmart:

BluSmart’s journey began in Gurugram, with the legal entity initially incorporated as Gensol Mobility Private Limited in October 2018, spearheaded by Anmol Singh Jaggi, Punit K. Goyal, and Puneet Singh Jaggi. The company rebranded to Blu-Smart Mobility Private Limited in 2019, setting its sights on offering the nation’s first fully electric ride-hailing service. This commitment to environmental sustainability was a core differentiator, aiming to provide a greener alternative to traditional taxi services.

  1. Early Financing:

Initial financing came through an angel funding round of Rs.30 lakh, attracting investments from prominent names like Hero MotoCorp, Jito Angel Network, and Micromax. This initial backing provided crucial capital and credibility. Later, post June 2019, the company partnered with Tata Motors and Mahindra as its OEM (Original Equipment Manufacturer) partners.  (Source: Annual Report FY2023)

  1. Initial Operational Model:

Before launching its independent platform, BluSmart strategically operated on Uber’s platform from March to November 2019, gaining invaluable insights into the ride-hailing market dynamics and customer needs. The company focused on electric vehicles (EVs), zero ride denials, and salaried drivers. 

  1. Expansion:

Between 2020 and 2023, the company scaled rapidly, expanding to Bengaluru, forming partnerships with Tata Motors and Jio-BP, and building a network of over 3,900 charging stations. It raised over $182 million in capital and achieved an annual revenue run rate of Rs.815 crore by early 2025. However, this growth came at a cost: BluSmart reported a loss of Rs . 215.9 crore in FY23, highlighting the financial strain of its capital-heavy model.

  1. Transitioning: 

As BluSmart transitioned from an asset-light leasing strategy to a vertically integrated model, with fleet ownership and infrastructure development, its operational complexity and financial vulnerability grew. This transformation, though intended to ensure quality and reliability, made the business more susceptible to governance lapses and fiscal stress—issues that have now surfaced with the service suspension linked to alleged financial irregularities at Gensol Engineering, a key partner.

What Happened With Gensol and BluSmart?

The cracks in BluSmart’s foundation began to show in early 2025, but the roots of the fallout trace back to its over-reliance on Gensol Engineering, its primary fleet provider and a company led by the same founders. Here’s how the event unfolded-

  • In March 2025, Gensol’s financial troubles came to light when CARE and ICRA downgraded its credit rating to ‘D’ (default). This immediately signaled a liquidity crisis. Shortly after, BluSmart missed payments on its non-convertible debentures, raising concerns that the financial strain had spread.
  • Things escalated when Gensol was accused of submitting falsified documents, including fake lender letters, to credit agencies and possibly investors. Meanwhile, promoter share pledging in Gensol soared to 85.5% by February, a sign of mounting desperation to secure funds.
  • By April 2025, the situation worsened. Gensol’s EV arm laid off 50 employees, with reports of unpaid salaries dating back to February. Operationally and financially, the company was under severe pressure. For BluSmart, its largest customer and dependent partner, this meant major disruption in fleet supply and infrastructure support.

What initially appeared to be a strategic correlation between two closely held companies turned into a high-risk entanglement. As Gensol unraveled, so did the stability BluSmart had built upon it. 

How Instability Attracted SEBI’s Investigation:

The financial misconduct at Gensol Engineering came to light in mid-April 2025, leading to a swift investigation by the Securities and Exchange Board of India (SEBI). The release of SEBI’s interim order on 15th April 2025 revealed severe financial mismanagement with the following findings-

  1. SEBI uncovered a massive diversion of funds from government loans intended for the purchase of electric vehicles (EVs). The total loans, amounting to Rs. 978 crore, were primarily obtained from agencies such as the Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC). Instead of using these funds for EV procurement, Gensol allegedly routed over Rs . 200 crore through a dealership, Go-Auto Pvt Ltd, into companies linked to the Jaggi brothers.
  2. Anmol Jaggi was found to have diverted Rs 25.76 crore from Gensol to his accounts and companies linked to him, including payments to the startup Third Unicorn.
  3. The report revealed records of personal expenditures, including purchases of luxury properties, high-end items such as wristwatches, foreign travel, and even payments for personal spa treatments—all funded by the misappropriated loans.
  4. Despite borrowing funds for the purchase of at least 6,400 electric vehicles, SEBI found that only 4,704 cars were acquired. The remaining funds were unaccounted for, adding another layer of suspicion. 
  5. SEBI also flagged forged documents, such as fake conduct letters from lenders, which were used to mislead credit agencies and investors about the company’s financial health.

In response to the severity of the findings, SEBI took rapid action. It 

  • Barred the Jaggi brothers from participating in the securities market 
  • Prohibited them from holding any managerial roles within Gensol 
  • Ordered a forensic audit of the company’s financial records to investigate the scale of the alleged fraud further. It put Gensol’s proposed stock split on hold due to concern over the company’s stability.

Impact on Gensol and BluSmart

The revelations had an immediate and dramatic effect on Gensol’s financial standing. The company’s stock price plummeted by over 80% in 2025 and dropped nearly 5% alone on April 18, 2025.

gensol
Source: Money Control

Credit rating downgrades followed, with further restrictions on Gensol’s ability to secure financing, compounding its financial distress. For BluSmart, the situation was equally dire. The intertwined leadership and business models meant that Gensol’s downfall reverberated directly to BluSmart, exposing deep risks that had been overlooked in their shared growth.

Impact Of The Investigation And BluSmart’s Response to Crisis:

A] Impact:

  1. The suspension of services, announced as of April 17, 2025, impacted BluSmart’s gig economy workers—the thousands of drivers who relied on the platform for their income.
  2. On 18th April 2025, just days after the SEBI order against Gensol, two Independent Directors, Harsh Singh and Kuljit Singh Popli, resigned from BluSmart’s board.
  3. Uber had previously tested around 300 BluSmart EVs on its platform and was reportedly in early acquisition talks. However, following BluSmart’s operational collapse and reputational damage from the Gensol scandal, the acquisition became uncertain.
  4. Even before the Gensol crisis, BluSmart was in deep financial trouble. It failed to raise the targeted $50 million, was burning over Rs 20 crore a month, and had delayed March 2025 salaries, as well as defaulted on bond payments. The scandal only exposed how fragile its finances already were.

B] BluSmart’s Action Plan:

  1. The company issued generic notices, informing users that bookings were “temporarily closed” and promising refunds for unused wallet balances within 90 days. 
  2. BluSmart’s shareholders had approved a shift to this new business model, in which BluSmart would provide a portion of its fleet (approximately 700-800 vehicles) to Uber’s platform. This transition had been in the works even before the crisis, but now took on an urgent tone.
  3. BluSmart then sought a $15–$20 million investment from Uber to transition its electric vehicles (EVs) to Uber’s platform, signaling a shift from competitor to fleet partner.

Lessons from the Gensol-BluSmart Crisis:

  • Governance Gaps Have Consequences:

Gensol’s crisis highlighted how weak board oversight and concentrated control can lead to unchecked risks. This is why it is recommended that investors seek strong governance and conduct independent checks, as they are essential indicators of long-term stability.

  • Linked Entities Equal Shared Vulnerabilities:

BluSmart’s heavy reliance on Gensol exposed it to collateral damage. When companies are operationally tied, risks don’t stay contained—investors must assess group-level interdependencies.

  • Fast Growth Needs Strong Foundations:

BluSmart’s rapid expansion masked deep financial strain. High cash burn, ambitious scaling, and weak fundraising traction can undermine seemingly successful ventures.

  • Reputation Risks Spread Quickly:

Gensol’s misconduct damaged BluSmart’s brand and viability. In tightly linked ecosystems, reputational fallout is rarely isolated and can erode trust across companies.

Bottomline:

This case illustrates the complexity and opacity of early-stage investments. In the aftermath of such events, you may need to closely track regulatory updates, board changes, and any signs of restructuring. While the situation is still evolving, greater clarity will likely come through audits, legal actions, and official disclosures over time.

Ultimately, this crisis serves as a reminder of what early-stage investing entails: pursuing high returns comes with significant operational, financial, and governance risks. Recognizing these early can help you stay prepared for the volatility that often comes with fast-moving sectors like electric mobility.

FAQs

  1. Is BluSmart completely shutting down?

    As of April 2025, BluSmart has not yet shut down entirely. It has suspended services but is exploring a fleet transition to Uber’s platform.

  2. Was BluSmart profitable before the crisis?

    No, BluSmart was running at a loss and recorded an annual net loss of ₹216 crore as of FY23. (Source: ET)

  3. How much funding has BluSmart raised since its inception?

    BluSmart has raised over $150 million in equity and debt since its founding in 2019, with backing from BP Ventures. (Source: ET).

India’s equity investor base is experiencing remarkable growth, reaching nearly 110 million unique investors, following a significant increase from 100 million in August and 90 million in February. At the end of November, the National Stock Exchange (NSE) reported that 107 million investors were registered with unique Permanent Account Numbers (PANs).

Maharashtra remains a key contributor, accounting for 16.5% of the total, with approximately 17.7 million investors. However, its share has slightly declined since March 2015, reflecting a broader distribution of investors nationwide. Uttar Pradesh has recently emerged as a leader in attracting new investors. (Source: www.ibef.org)

Demographic Shifts and Inclusion

A notable trend in the investor demographic is the influx of younger individuals, with those under 30 years old now comprising 40% of the total investor base, a significant increase from 22.6% in March 2019. Additionally, gender inclusion is improving, with the proportion of female investors rising to 24% from 22.7% in March 2022. In specific regions, such as Goa, Chandigarh, and Mizoram, female investors account for over 30% of the total, marking positive strides toward greater diversity in the investment landscape. (Source: www.ibef.org)

Market Pressures Begin to Ease

Despite this massive and growing investor base, the Indian stock market has been facing persistent challenges due to socio-economic pressures, including global inflationary trends, geopolitical uncertainties, and tightening monetary policies by central banks worldwide. However, recent developments indicate that the tide is beginning to turn.

On April 17, 2025, Indian equity markets witnessed a remarkable surge, with the BSE Sensex jumping by a staggering 1,509 points (1.96%) to close at an all-time high of 78,553. Simultaneously, the NSE Nifty50 surged 414 points (1.77%) to end at 23,851. This marked the fourth consecutive session of robust gains, resulting in an estimated increase of ₹4.33 lakh crore in the market capitalization of BSE-listed firms, bringing the cumulative valuation to a record ₹419.33 lakh crore. (Source: timesofindia.indiatimes.com)

What Sparked the Rally?

This bullish sentiment did not arise in isolation. A convergence of macroeconomic signals, investor behaviours, and international developments aligned to bolster market confidence. Here’s an in-depth look at the key drivers propelling this rally:

image 1
Source: TradingView

1. Banking Sector Leads the Charge

Banking stocks were at the forefront of the rally. The Nifty Bank index recorded a nearly 2% increase, supported by significant upward movement in shares of HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank. Together, these institutions contributed approximately 600 points to the Sensex rally.

Investor enthusiasm was driven largely by expectations surrounding Q4 earnings, with major banks slated to announce results on April 19. Anticipations of healthy loan growth, improved asset quality, and stable net interest margins further contributed to positive sentiment.

2. Foreign Institutional Investors Fuel the Momentum

Foreign Institutional Investors (FIIs) have been on a buying spree, pumping in over ₹3,936 crore on April 16 alone. In the last two trading sessions, net FII inflows have crossed ₹10,000 crore.

This renewed interest is attributed to the perceived resilience of the Indian economy amidst global headwinds, including economic slowdowns in the US and China. Many foreign institutional investors (FIIs) have shifted their focus towards high-quality Indian large-cap stocks in sectors such as banking, IT, and FMCG, where domestic consumption remains robust.

3. Global Trade Sentiment Lifts Regional Markets

Positive developments from the ongoing trade talks between the United States and Japan uplifted investor sentiment across Asian markets. Japan’s Nikkei index rose, driven by the weakening yen and potential trade gains.

India’s strategic partnerships with the US, the UK, and Japan also contribute to this optimism. With the US focusing on realigning its supply chains away from China, India stands to benefit through increased trade collaborations and investment opportunities.

4. US Dollar Weakness Supports Emerging Markets

The US Dollar Index has continued to slide, dropping from 109.88 in February to 99.56 in April. A weaker dollar traditionally boosts investor appetite for emerging markets by making assets in these regions more attractive and affordable.

Additionally, the rupee has shown relative stability, and a softer dollar reduces imported inflationary pressures. Sectors such as metals and IT, which are influenced by global demand and currency dynamics, received a notable boost. (Source: timesofindia.indiatimes.com)

5. Temporary Reprieve from US Tariffs

Another factor contributing to market positivity is the announcement by US President Donald Trump postponing new tariffs on 75 countries, including India, until July 9. This move has temporarily eased global trade tensions, providing investors with a sense of relief and stability.

While the long-term direction of US trade policy remains uncertain, the extension has allowed markets to recover and regain footing, especially those in export-sensitive economies. (Source: timesofindia.indiatimes.com)

Broader Implications and Outlook

The recent rally underscores the inherent strength and resilience of the Indian equity market. It reflects investor confidence in India’s macroeconomic stability, corporate earnings potential, and proactive monetary policies.

Beyond the headline numbers, the rally serves as an indicator of how interconnected global and domestic factors influence market dynamics. Strong FII interest, anticipation of robust earnings, and a conducive geopolitical environment together set the stage for sustained optimism.

That said, market watchers should remain vigilant. With upcoming corporate earnings, global central bank policy announcements, and evolving geopolitical tensions, volatility could return. Diversification and disciplined investment strategies will be key for long-term wealth creation.

Conclusion

India’s stock market rally on April 17 is not just a technical uptick but a manifestation of robust investor confidence, strategic economic positioning, and favourable global cues. As the Indian economy continues to navigate global shifts with resilience, the coming months may see further consolidation of gains, provided macroeconomic fundamentals remain stable.

For investors, the current scenario is both a testament to the potential of Indian equities and a reminder to remain informed and agile.

FAQs

  1. Why did the Indian stock market rally on April 17, 2025?

    The rally was driven by a combination of factors, including strong performance in banking stocks, significant foreign institutional investments, easing of US tariffs, weakening of the US dollar, and positive developments in global trade talks.

  2. What role did the banking sector play in the rally?

    Major banks like HDFC Bank and ICICI Bank posted significant gains ahead of their Q4 earnings announcements, leading to a nearly 2% rise in the Bank Nifty index and contributing substantially to the Sensex’s overall gain.

  3. How are FIIs influencing the Indian markets?

    Foreign Institutional Investors (FIIs) have shown renewed confidence in Indian equities, investing over ₹10,000 crore in just two days. Their focus has been on high-quality large-cap stocks in sectors such as IT, banking, and FMCG.

  4. How does the weakening US dollar affect Indian markets?

    A weaker dollar increases the attractiveness of emerging markets, such as India. It also helps stabilise the rupee and reduce import-related inflation, benefiting export-oriented and dollar-sensitive sectors.

  5. What does the future hold for Indian markets?

    While the recent rally signals strong investor confidence, upcoming corporate earnings, global interest rate decisions, and geopolitical events will shape the market’s direction. A balanced, informed investment strategy remains crucial.

India’s trade deficit with China has surged to an all-time high of $99.2 billion in FY24, up 12% from the previous year, according to official data from the Ministry of Commerce and Industry (Reuters, April 2025). Despite geopolitical tensions, bilateral trade touched $118.4 billion, with imports from China far outstripping exports.

The economic implications of this widening gap are profound—not just for India’s trade policy but for its industrial ambitions, national security, and long-term economic resilience.

india china trade
Source: MoC | Reuters

What’s Driving the India-China Trade Deficit?

1. India’s Dependence on Chinese Manufacturing

Despite the push for self-reliance under the Atmanirbhar Bharat initiative, India remains heavily reliant on Chinese imports for critical inputs across various industries, including electronics, telecom, pharmaceuticals, chemicals, and machinery. For instance, over 75% of India’s active pharmaceutical ingredient (API) needs are met by China (Statista).

sectoral dependency 1
Source: DPIIT, Statista & ET Prime

2. Low Export Penetration in China

India’s exports to China have not kept pace with its imports from China. Even as China remains a top trading partner, India lacks a competitive edge in sectors that matter to Beijing’s supply chains. Primary exports, such as iron ore and cotton, face diminishing returns as China diversifies its suppliers.

3. Dumping Concerns

Indian manufacturers have raised concerns about Chinese firms “dumping” goods at below-cost prices, particularly in the sectors of steel, chemicals, and electronics. This erodes domestic production and makes Indian alternatives uncompetitive.

  • The Directorate General of Trade Remedies (DGTR) has over 100 ongoing anti-dumping investigations, many of which target Chinese imports (ET Prime).

4. China’s Cost Advantage

China’s economies of scale, advanced logistics, and centralized industrial policy give it a structural cost advantage. India’s fragmented production ecosystem and higher logistics costs (14% of GDP, compared to China’s 8%) widen the competitiveness gap. 

logistics costs colored 1
Source: World Bank | Niti Aayog

Strategic and Economic Implications for India

1. Strain on Foreign Exchange and Trade Balance

The massive outflow of dollars to fund imports from China increases pressure on India’s current account deficit (CAD). In FY24, the CAD was estimated at 1.5% of GDP, with the Chinese deficit making a significant contribution.

2. Impact on Domestic Manufacturing

Cheap imports suppress local manufacturing, particularly for micro and small enterprises (MSMEs). This contradicts India’s ambition of becoming a global manufacturing hub and undermines employment generation in key sectors.

3. National Security Risks

Dependence on a geopolitical rival for strategic sectors, such as semiconductors, telecommunications equipment, and application programming interfaces (APIs), poses national security concerns, particularly given the unresolved border tensions in Ladakh.

What Can India Do?

India cannot afford to close its doors to China, but it must close the capability gap. The approach needs to be multi-layered, involving trade strategy, industrial policy, and diplomatic recalibration.

1. Precision Tariff Strategy, Not Blanket Bans

  • Blanket bans or large-scale tariffs could harm Indian industries that rely on Chinese inputs.
  • Instead, India should adopt precision tariffs in sectors where:
  • Domestic players have the capacity. 
  • Chinese goods are being dumped. 
  • Strategic autonomy is essential, particularly in sectors such as telecom and defense components. 

Example: Anti-dumping duties on Chinese aluminum and solar modules have already helped revive domestic competition in those sectors.

2. Turbocharge the PLI Scheme

India has launched ₹2 lakh crore worth of Production Linked Incentive (PLI) schemes across 14 sectors, ranging from electronics and semiconductors to pharmaceuticals and textiles. These need:

  • Faster disbursement of incentives. 
  • Focus on R&D-driven manufacturing, not just assembly. 
  • Supportive ecosystem: power, logistics, labor laws. 

India’s mobile exports surpassed $15 billion in FY24, primarily driven by the production of Apple and Samsung devices under the Production Linked Incentive (PLI) scheme. (Source: Invest India)

3. Invest in Critical Supply Chains

  • India should prioritize API parks, semiconductor fabs, and EV battery ecosystems to plug critical input dependencies.
  • ₹18,000 crore has been allocated for semiconductors, but global giants like TSMC or Intel haven’t committed yet. India must offer better ease of doing business, as well as land and capital assistance.

4. Trade Diplomacy and FTAs

India’s trade strategy should focus on:

  • Securing duty-free access for Indian goods in markets like the UAE, UK, EU, and Australia
  • Leveraging the IPEF (Indo-Pacific Economic Framework) to access alternate suppliers. 
  • Building regional value chains via QUAD or BIMSTEC. 

India’s trade with ASEAN reached $131 billion in FY24, showing potential to replace some Chinese imports.

Policy Response: What Needs Urgent Focus 

Policy AreaCurrent StatusRecommendations
Tariff & Anti-DumpingOver 100 anti-dumping probes are ongoingFast-track DGTR enforcement, auto-renewal for chronic sectors
PLI SchemesApproved but facing implementation delaysSimplify compliance, incentivize capex-linked R&D
LogisticsCosts at 14% of GDPTarget 8% by 2030 via PM Gati Shakti, rail+port digitization
FTAs & Trade DiplomacySigned with UAE, ongoing with EU, UKPrioritize market access in sectors like textiles, pharma, and agri
Skill + InnovationSkill India, Startup India underwayLink ITIs with local MSMEs, incentivize tech transfer via JV models

Is It Time to Shift from Reactive to Strategic Trade Policy?

India’s record $99.2 billion trade deficit with China is not an isolated failure—it’s a reflection of policy inertia, delayed reforms, and lopsided integration with global trade networks. A mix of targeted protectionism, aggressive domestic industrialization, and trade diversification is needed to reverse the trend.

Rather than wait for another shock, India must act now. The tools exist—execution will decide the outcome.

Inox Wind, a leading name in India’s renewable energy sector, saw its shares climb for the second straight day this week. On April 16, 2025, the stock surged 7%, rising from ₹151.59 to ₹161.33 and reaching a high of ₹164.68 on NSE. This upward move pushed the company’s market capitalisation to an impressive ₹20,795 crore.

The upward movement comes amid a broader rally across the Indian stock market, catching the attention of both retail and institutional investors.

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Source: NSE

Trading activity was robust, too. Around 1.95 lakh shares changed hands during the session, contributing to a turnover of approximately ₹3.10 crore on BSE. This kind of active participation often reflects growing investor confidence in a stock. Source: Business Today

Inox Wind’s Growth Momentum

Inox Wind, a key player in the wind energy sector, is known for its advanced wind turbine generators (WTGs) and offers comprehensive services such as EPC (erection, procurement, and commissioning), operations and maintenance (O&M), as well as wind farm development. 

The company bagged a notable 51 MW project in Tamil Nadu, reflecting strong demand for its 3 MW turbines. Backed by a strong order book and ongoing efforts to expand manufacturing capacity, Inox Wind is set to boost its revenues further, driven by India’s growing focus on green energy. Source: Mint

Key Financial Highlights of Inox Wind

Market Cap on 17.4.25 (in Crore)CMP on 17.4.25HighPE RatioROCEBook ValueFace Value
21,415₹164₹26269.34.26%₹20.5₹10
Source: Screener

The revenue for the quarter ending December 2024 rose by 81% year-on-year to ₹911 crore, compared to ₹503 crore in the same quarter last year. Profit also saw a remarkable surge, jumping 5,500% to ₹112 crore, up from just ₹2 crore reported in the December 2023 quarter.

Inox Wind Stock Soars 2,717% in 5 Years 

While the stock is currently trading far below its 52-week high of ₹262.10, which it reached on September 23, 2024, long-term investors are hopeful for some more positive news.

Yes, there has been a 39% dip from those record highs, signaling a period of correction. But when you look at the bigger picture, the story turns much more positive.

Over the past two years, Inox Wind’s stock has surged by 555%. Over three years, the return is 442%, and in the last five years, it has skyrocketed by an astonishing 2,717%.

Is Inox Wind a High-Beta Stock?

If you’re wondering whether the stock is risky or stable, its beta value offers some insight. With a beta of 1.7, Inox Wind is considered more volatile than the broader market. That means it tends to swing more significantly, both up and down.

Stocks with a beta above 1 are generally more volatile—they move more sharply than the market. A beta below 1 suggests less fluctuation and potentially lower risk. High-beta stocks, like Inox Wind, can offer higher returns but come with greater risk, especially during market swings.

In terms of technical indicators, the stock is currently trading below its 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day moving averages. However, it’s trading above its 5-day and 10-day moving averages.

This setup suggests short-term bullishness, but longer-term technical trends are still showing weakness, likely due to the recent corrections. Source: Business Today

What Are Analysts Saying?

Despite its recent decline, brokerages seem to be optimistic about Inox Wind’s outlook, with some setting a price target of ₹221, indicating potential upside. They project a 144% YoY revenue surge and a 41% QoQ rise in Q4, driven by higher deliveries of 3MW Wind Turbine Generators. 

EBITDA (excluding other income) is projected to rise 152% YoY and 24% QoQ to ₹257 crore in Q4 FY25, driven by improved project execution, increased EPC activity, and higher manufacturing output. A growth driver is the sharp reduction in interest expenses, with analysts forecasting a 50% YoY and 21% QoQ decline, leading to an estimated net profit after tax of ₹188.7 crore—up 68% sequentially. 

Analysts expect execution volumes to grow significantly from 376 MW in FY24 to 1,800 MW by FY27. However, risks such as execution delays, policy shifts, and weak order inflows remain areas of concern.

One area where Inox Wind is expected to expand is its Operations and Maintenance (O&M) services. Experts predict that the O&M fleet will grow from 3.2 GW in FY24 to 3.6 GW by FY27. This ongoing expansion, combined with the company’s in-house EPC abilities, is expected to contribute to revenue and earnings. Source: Business Today

Inox Wind’s Strategic Edge

What sets Inox Wind apart from some of its peers is its vertical integration. The company not only manufactures wind turbines but also handles EPC projects and offers long-term O&M contracts. This end-to-end approach helps control costs, enhance project timelines, and provide better service.

Its 3MW WTG platform, a newer and more efficient generation of turbines, has also gained strong traction. Better execution of these orders is already reflecting in improved revenue and EBITDA numbers.

Moreover, India’s renewed push for clean energy and the government’s focus on achieving net-zero emissions by 2070 give companies like Inox Wind an encouraging growth runway.

What Should Investors Consider?

Here are a few factors to keep in mind:

1. Volatility is High

This isn’t a low-risk stock. The beta of 1.7 means prices can swing dramatically in short time frames.

3. Brokerage Optimism

Brokerage firms have issued strong price targets, driven by expectations of robust growth in capacity, revenue, and profitability.

4. Execution and Policy Risks Exist

Potential delays in project execution and unforeseen government policy shifts are risks that should be monitored closely.

5. Momentum in the Green Energy Sector

The renewable energy sector, especially wind and solar, is likely to remain a key investment theme for the next decade. Inox Wind, with its solid market position, stands to benefit.

Is Inox Wind a Stock to Watch?

Inox Wind has demonstrated significant long-term growth, even though it has faced recent price corrections. The company continues to expand operations, supported by favorable macro trends in green energy and a steady pipeline of projects. 

Analysts have noted strong momentum in execution and performance metrics. While the stock has shown some volatility, its role in India’s renewable energy landscape remains notable. 

Investors should closely monitor ongoing developments and market conditions, ensuring that any investment decisions align with their risk tolerance and financial goals. Independent research or advice from a registered investment advisor is essential before making any financial commitments.

FAQs

  1. What caused the 7% rise in this green energy stock?

    The 7% increase is credited to improved execution and commissioning, driven by EPC projects and a ramp-up in manufacturing, which boosted market sentiment.

  2. What is the current market capitalization of this stock?

    Following the 7% surge, the market capitalization of the green energy stock has crossed the ₹20,000 crore mark, reaching ₹20,795 crore on the BSE as of April 15, 2025. This signifies growing investor confidence in the company’s performance.

  3. What are the key technical indicators for this stock?

    The stock is trading below its 20, 30, 50, 100, 150, and 200-day moving averages but above the 5- and 10-day averages, indicating a mixed short-term and long-term trend. Its beta of 1.7 suggests high volatility.

  4. What lies ahead for the company?

    The company is expected to witness significant revenue and EBITDA growth, driven by strong execution momentum in EPC projects and a growing O&M fleet. Analysts anticipate substantial year-on-year and quarter-on-quarter increases in financials for FY26 and FY27.

Frequently asked questions

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An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.

An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.

An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.

An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.