Investment and Wealth Management - Newspaper Summary

 The available sources paint a comprehensive picture of Investment and Wealth Management in India in October 2025, characterized by robust capital market activity, shifting investor strategies driven by market volatility, a strong push toward financial digitalization, and significant capital inflows into the banking and financial services sectors.

I. Investment and Capital Market Dynamics

In the broader context of India's economic and market dynamics, the sources highlight a mixed environment where market sentiment is cautiously optimistic, and capital raising activity remains strong.

Equity Market Performance and Outlook (Oct 2025)

The benchmark indices, the 30-scrip Sensex and the 50-stock Nifty, have remained below their all-time highs set in September 2024, maintaining this depressed level for 13 months. The financial performance of India Inc. has been described as lacklustre, discouraging fresh buying in the face of inflated stock prices.

Market Volatility and Returns:

• Equity markets overall experienced low single-digit returns in the past Samvat year (FY26), while debt instruments fared worse due to unexpectedly rising interest rates.
• Despite this, market experts expect the volatility to persist for at least the next six months.
• The Nifty 50 is projected to reach the 27,000–28,000 range by the next Samvat (October 2026), driven by expected rate cuts, tax benefits (like GST 2.0 reforms), liquidity support, and higher government spending.
• Large-cap stocks outperformed in 2025 due to sound fundamentals, better valuations, and institutional investor preference, navigating global volatility with resilience. Conversely, mid-cap, small-cap, and micro-cap segments faced heightened volatility and investor caution due to sluggish global demand and stretched valuations.

Investment Trends and Sentiment:

• Foreign vs. Domestic Flows: Foreign Portfolio Investors (FPIs) have sold a record ₹2 trillion in the cash market so far this calendar year, seeking exit due to stretched valuations and decelerating earnings growth. Domestic institutional investors, however, are leveraging mutual fund inflows to buy up dips, betting on India’s long-term growth story.
• Corporate Earnings: India Inc.’s top executives expect earnings to pick up only in the second half of FY26 (H2FY26). The earnings downgrade cycle, which cut Nifty 50 EPS significantly over the past 12 months, is believed to be nearing its end.
• Contrarian Picks: Select sectors are identified as potential contrarian bets for long-term investors, including the IT sector (due to priced-in pessimism and reasonable large-cap valuations) and Oil Marketing Companies (OMCs) (benefiting from lower crude prices and higher capex).

Capital Raising and IPO Momentum

The primary market remains robust, signaling strong confidence from issuers and institutional investors:

• IPO Activity: Equity capital market volumes are expected to increase, with Indian companies potentially raising over $20 billion through IPOs by the end of 2025. India is among the top four countries globally for IPO volume in 2025.
• Key IPOs: Meesho, a Softbank-backed e-commerce marketplace, filed an updated DRHP to raise up to ₹4,250 crore via a fresh equity issue, targeting a listing in December. Avaada Electro also sought to raise ₹10,000 crore via an IPO.
• Market Sentiment on IPOs: Nearly 53% of surveyed respondents believe that IPO momentum will remain strong through FY26, buoyed by liquidity and retail participation.

II. Gold and Alternative Assets

Precious metals and alternative investment avenues have gained prominence amid global uncertainty.

Gold and Silver Rally

Gold and silver prices have witnessed a massive surge, significantly outperforming equity markets in 2025.

• Record Prices: On October 18, 2025, 24-carat gold in the Delhi market was trading at a record high of ₹1,31,800 per 10 gram, and silver was at ₹1,70,000 per kg.
• Driving Factors: The rally is attributed to global geopolitical tension, US-China tariff uncertainties, expectations of US Federal Reserve interest rate cuts, robust buying by central banks, and the metals' appeal as safe-haven assets.
• Outlook: Bullish momentum is projected to continue, with some analysts predicting gold prices could reach ₹2 lakh per 10g within the next 2-3 years. However, 64% of experts surveyed remain doubtful about gold hitting ₹1.5 lakh per 10g by FY26-end due to global policy volatility.
• Impact on Businesses: The high prices have led to a boom for gold-centric NBFCs (like Muthoot Finance and Manappuram Finance), significantly boosting their AUM and profitability. Conversely, jewellery companies face headwinds due to waning retail demand, as middle-class consumers scale back purchases.

Specialized and Alternative Investments

The market is maturing, leading to the development of sophisticated investment products:

• Alternative Investment Funds (AIFs): AIFs are expected to become more mainstream. Franklin Templeton has shifted its private credit business into the AIF framework, focusing its first private credit AIF on the NBFC sector.
• Specialized Investment Funds (SIFs): Franklin Templeton is exploring SIFs, particularly the long-short strategy, which is relatively new in India. SEBI is noted for allowing larger and specialized investors to access these products.
• REITs and InvITs: The sources mention that Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) provide inflation-linked income streams from commercial properties and toll roads, blending equity-like growth with debt stability. SEBI classified REITs under the equity category for mutual fund investment purposes in October 2025.

III. Wealth Management and Financial Planning

The focus is shifting towards financial discipline, long-term systematic investing, and utilizing digital infrastructure for enhanced access.

Emphasis on Discipline and Compounding

Financial planners stress the importance of balancing consumption (especially during the Diwali festive season) with disciplined investing.

• SIPs and Long-term View: Consistent investment via Systematic Investment Plans (SIPs) is highlighted as the core method for sustainable wealth creation, overriding short-term volatility.
• The Cost of Splurging: Examples illustrate how money spent on short-lived items (like sweets or new sofas) could yield substantially higher returns if invested consistently (e.g., a ₹1,000 monthly SIP growing to ₹2.4 lakh over 10 years in a Nifty 50 Index Fund).
• Portfolio Cleanup: The festive season is recommended for financial "spring cleaning," urging investors to consolidate holdings, identify overlapping investments, close redundant accounts, and reaffirm asset allocation based on long-term goals rather than chasing past winners (TrendMap).

Digitalization and Accessibility (ONDC)

A significant development democratizing financial access is the expansion of the government-backed Open Network for Digital Commerce (ONDC) into financial services.

• Financial Internet: ONDC aims to create an "actual financial internet" by making discovery, verification, and delivery of financial products (loans, insurance, mutual funds) interoperable. It works on the same rails as UPI.
• Mutual Funds on ONDC: ONDC is gaining traction in the mutual fund space, with 19 AMCs already live. This system allows investors to access funds from multiple AMCs through any integrated app, regardless of which platform the AMC is partnered with.
• Increased Access: This technology reduces the number of intermediaries, lowering costs and enabling smaller ticket size SIPs, creating a level playing field, particularly for the unserved masses in B30 (Beyond Top 30) towns, which are considered the "real growth market".

Growth in Banking and Financial Services

The financial sector is undergoing significant recapitalization and strategic realignment, particularly in mid-sized private banks.

• Foreign Capital Inflow: Emirates NBD Bank agreed to acquire a 60% stake in RBL Bank for ₹26,850 crore ($3 billion), marking the largest foreign direct investment and equity fundraise in India’s banking sector to date. This deal signals a potential resurgence of foreign banks in India and is expected to spur more global interest.
• Strategic Focus: RBL Bank aims to use this capital injection to exit the mid/small-sized bank league and enter the "big bank league". Major synergies are expected in export-import, international business, and crucially, wealth management, leveraging Emirates NBD’s international private banking product portfolio to tap into Indian HNIs and Ultra HNIs.
• Corporate Credit Growth: In a reversal of a previous trend, large-sized banks reported robust growth in their corporate loan portfolios in Q2FY26, with Axis Bank's corporate loans growing 20% year-on-year. This growth is tied to opportunities in sectors like data centers, warehousing, solar PV modules, and EVs, indicating a potential pickup in private capital expenditure.