Equity Mutual Funds Hit ₹42,702 Crore Inflows Surge 81% in July!

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Finance Minister Nirmala Sitharaman has tabled the revised Income-Tax Bill, 2025 in the Lok Sabha, replacing the withdrawn February draft. The overhaul integrates most Select Committee recommendations, fixes drafting errors, and simplifies refund rules to cut compliance headaches. Key changes aim to clarify definitions, streamline deductions, and reduce legal ambiguities, which could benefit both individuals and businesses. For investors, the bill’s cleaner framework promises greater policy predictability and a more stable tax environment, potentially boosting business sentiment. Its success, however, will depend on how efficiently these reforms are implemented on the ground.

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IMPACT NEWS

Money Momentum: India’s Equity Mutual Funds Ride an 81% July Inflow Wave

July delivered a standout moment for India’s mutual fund industry. Equity mutual fund inflows surged 81% month-on-month, touching a record ₹42,702 crore, fueled by strong interest in sectoral, thematic, and flexi‑cap funds. That’s equity investing on steroids. Meanwhile, SIP contributions hit a new peak of ₹28,464 crore, underscoring growing trust in systematic investing.

What’s more, this marks the 53rd consecutive month of net inflows, with Assets Under Management (AUM) climbing to a fresh high of ₹75.36 trillion.

The enthusiasm isn’t limited to a single style small‑cap funds grabbed ₹6,484 crore (up 61%), mid‑caps saw ₹5,182 crore (up 38%), and even large‑cap garnered ₹21,250 crore, all reflecting widespread investor confidence.

MARKETS

After six straight weeks of losses, the Indian markets appear to be breaking free from the slump Sensex surged nearly 750 points to land around 80,604, and Nifty pushed past 24,585, fueled by sharp buying in banking, auto, and realty stocks. The rally was led by robust Q1 earnings from SBI and Grasim, alongside renewed optimism from Asian markets and record-high mutual fund inflows an upbeat shift that suggests cautious hope is returning to Dalal Street.
_{Closing figures as on 11.08.25 (3.30pm IST)}

🔎 In Focus

Stock Performance:

Top Gainers

✅ Adani Enterprises (↑ 4.83%) - Jumped on strong market-wide rebound, with heavy buying in infra and diversified plays; also boosted by easing tariff concerns and robust mutual fund inflows.

✅ Tata Motors (↑ 3.16%) - Rose despite a 63% YoY Q1 profit drop, as bargain hunters stepped in after recent corrections, betting on long-term growth prospects.

✅ Eternal (↑ 2.82%) - Gained on renewed institutional interest and rotational buying into mid-tier Nifty stocks during today’s market rebound.

✅ Grasim Industries (↑ 2.50%) - Climbed after Q1 results beat estimates, with strong performance in paints and cement segments drawing investor attention.

Top Losers

🔻 Hero MotoCorp (↓ 0.82%) - Fell on profit booking after recent rallies; two-wheeler sales outlook remains cautious amid mixed rural demand signals.

🔻 Bharat Electronics (↓ 0.18%) - Minor dip likely due to sector rotation, as defense stocks took a breather after strong earlier gains.

🔻 Bharti Airtel (↓ 0.06%) - Marginal slip as investors rotated into cyclical and recovery-led sectors; telecom sentiment steady but lacked fresh triggers today.

Q4 RESULTS

^{Click on company name for result pdf} 

INDIA FRONTIER

Everything else you need to know today

🚀 Defiance: In a bold currency play, India is fast-tracking rupee-based settlements for global trade, sidestepping the dollar amid Trump’s toughened currency stance. This isn’t just about payment systems it’s a signal of growing financial independence, potentially reshaping how emerging markets settle cross-border deals.

🔍 Squeeze: Trump’s 50% levy on certain imports is forcing Indian banks into heightened due diligence mode, especially for exporters with U.S. exposure. Transactions are now under a finer lens, slowing trade flows but also prompting companies to rethink supply chains.

⚡ Mega: L&T has secured an “ultra-mega” order from Adani Power to build 6,400 MW thermal power units, marking one of the biggest deals in India’s power sector. While renewables grab headlines, this mammoth thermal project signals that fossil fuel capacity still plays a key role in meeting surging energy demand.

📈 Euphoria: Veteran investor S. Naren warns that markets are starting to resemble the frothy 1990s boom where retail enthusiasm turned into reckless risk. With investors acting like “the new bankers,” lending and funding are happening outside traditional channels.

SPECIAL

Institutional Tug-of-War: DIIs Bullish While FIIs Retreat in Nifty 50 June Moves

The latest Motilal Oswal India Strategy report highlights a notable shift in Nifty 50 stock ownership: Domestic Institutional Investors (DIIs) are on the offense, while Foreign Institutional Investors (FIIs) are pulling back. In June 2025, DIIs lifted stakes in 44 out of 50 Nifty companies, while FIIs trimmed holdings in 40 signaling a growing homegrown investing momentum.

By June, DII ownership reached a record 23.9%, gaining 210 basis points year-on-year, while FII ownership slipped to 24.9%, down 30 basis points YoY but slightly up 20 bps quarter-on-quarter.

Here are the Nifty 50 stocks that drew the most heat from institutional buyers in June:

• Asian Paints: DII stake jumped 5.5% a sign of renewed confidence in recovery.

• Eternal (likely Zomato): DIIs added 2.9%, reaching 30.9%, while FIIs maintained a 44.3% share.

• Cipla: DII ownership rose 4.3% YoY (+1.1% QoQ); FIIs dialed back by 2.5%.

• Bajaj Auto, Trent, NTPC, Shriram Finance, and Tata Steel all saw domestic inflows, with foreign investors generally leaning out.

THE HANOOMAAN INSTITUTE

Gen Z’s Love on a Budget: How Creativity Is Replacing Costly Dates

Gen Z is redefining romance, prioritizing financial health over expensive nights out. Rising rent, inflation, and stagnant wages are prompting a cultural shift love is no longer measured by the price tag, but by the quality of connection and creativity.

💸 Zero-dollar dating is common Over 50% of Gen Z adults spend nothing on dating each month, not out of disinterest, but due to economic realities.

📊 Financial goals come first More than half are building emergency savings, while 24% are actively paying down debt instead of splurging on restaurants, movie tickets, or weekend getaways.

🍝 Low-cost romance thrives Couples are trading $100 dinners for home-cooked meals, sunset walks, thrift-store finds, or nostalgic music nights.

🚫 Rejecting “social spending pressure” They’re setting boundaries to avoid overspending just to fit in, protecting both their finances and mental wellbeing.

🎯 Intentional love This isn’t about being “cheap,” but about valuing shared experiences over material displays.

💡 Opportunity for businesses Coaching, wellness, and fintech brands can tap into this trend by offering products and services that align with Gen Z’s value-driven, budget-conscious lifestyle.

Love, for Gen Z, isn’t disappearing it’s simply being reimagined.

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Until tomorrow!

Hanoomaan India Business team

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