Indian Markets Rally to New Highs Amidst Global Watch, SEBI Fee Cuts Impact Asset Managers

Economy

29th October 2025, 4:32 PM

Indian Markets Rally to New Highs Amidst Global Watch, SEBI Fee Cuts Impact Asset Managers

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Stocks Mentioned :

Larsen & Toubro Limited

Vedanta Limited

Short Description :

Indian stock markets closed higher, with the Nifty crossing 26,000 and midcaps reaching a one-year peak, driven by metals, financials, and Adani Group stocks. However, mutual fund companies saw a decline following SEBI's proposal to reduce management fees, a move welcomed by investors for transparency. Globally, investors are focused on US-China trade talks and the anticipated US Federal Reserve rate cut. Larsen & Toubro's Q2 earnings missed estimates, while Vedanta's demerger faced further delays. India also approved rare earth magnet imports from China to boost manufacturing.

Detailed Coverage :

Indian stock markets concluded Wednesday on a strong note, with the benchmark Nifty index surpassing the 26,000 mark and the midcap index hitting a one-year high. Gains were primarily observed in the metal, financial, and select Adani Group stocks. Conversely, asset management companies experienced a downturn after the Securities and Exchange Board of India (SEBI) proposed a reduction in mutual fund fees and expense ratios, a move intended to benefit investors and enhance transparency.

Globally, attention remains fixed on the crucial trade negotiations between United States President Donald Trump and Chinese President Xi Jinping in Busan, ahead of the tariff truce deadline. President Trump also expressed optimism about a future trade deal with India. Additionally, the outcome of the US Federal Reserve's monetary policy meeting, where a rate cut is widely anticipated, is a key focus for global investors.

Domestically, Larsen & Toubro reported its second-quarter financial results, which fell short of market expectations despite a significant surge in order inflows. Vedanta Limited's much-anticipated demerger plan encountered another setback due to the reconstitution of the National Company Law Tribunal (NCLT) bench, leading to a dip in its stock price. In a strategic move to bolster manufacturing self-reliance, India granted initial approvals to three domestic companies for the import of rare earth magnets from China.

Impact: This news has a significant impact on the Indian stock market, influencing investor sentiment, driving sector-specific performance, and affecting the profitability of asset management companies. Global events also add a layer of volatility and opportunity. Rating: 8/10

Definitions: Net Asset Value (NAV): The per-share market value of a mutual fund's assets, minus liabilities. Any fees deducted directly reduce the NAV. Expense Ratios: Annual fees charged by mutual fund companies to cover operational costs, deducted from the scheme's assets. Tariff Truce: An agreement between countries to temporarily suspend or reduce tariffs on imported goods. National Company Law Tribunal (NCLT): A specialized judicial body in India for corporate and bankruptcy cases. Demerger: A corporate restructuring where a company splits into two or more independent entities.