Author: Eqwires

The Securities and Exchange Board of India (SEBI) has proposed a new framework that mandates mutual fund houses to launch an additional scheme once their total Assets Under Management (AUM) surpass ₹50,000 crore. This move comes as part of SEBI’s broader effort to enhance product offerings and foster competition in the mutual fund space.

What Has SEBI Proposed?

In a consultation paper released recently, SEBI has suggested that asset management companies (AMCs) whose AUM exceeds ₹50,000 crore should be required to offer an additional active equity-oriented scheme. The rationale behind this proposal is to ensure that large fund houses offer a broader range of products to suit varying investor needs, especially in actively managed equity funds.

This proposed regulation aims to balance the growing dominance of a few large AMCs and encourage better fund diversification across the market.

Why This Matters

• Investor Choice: By offering more schemes, investors will have a wider variety of actively managed options tailored to different risk and return profiles.
• Market Depth: The proposal may help spread investments across more sectors and stocks, contributing to a deeper and more stable market.
• Level Playing Field: It seeks to ensure that large AMCs contribute meaningfully to the development of active strategies and not just passive growth.

Industry Reactions

The industry is evaluating the operational and strategic implications of this proposal. While some experts believe this will empower investors and push AMCs to innovate, others caution about potential scheme overlap and the need for careful fund positioning.

Current Landscape

India’s mutual fund industry has seen massive growth in recent years, with total AUM crossing ₹58 lakh crore as of June 2025. A few large fund houses dominate the market, leading to concerns around concentration of investor money and lack of differentiated offerings in the active fund space.

Next Steps

SEBI has invited public comments on the proposal by the end of July 2025. Based on feedback, the regulator will finalize the rules in the coming months.

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Conclusion:

SEBI’s move signals a new phase in mutual fund regulation, focused on expanding investor choice and encouraging innovation among large fund houses. As the AUM benchmarks are crossed, investors can expect new product opportunities tailored to India’s dynamic equity markets.

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Indian equity markets faced sharp selling pressure on Monday, with the Sensex plunging 501 points to settle at 82,156 and the Nifty 50 slipping 145 points to close at 24,984, falling below the key 25,000 mark. Investor sentiment was weighed down by a mix of global and domestic cues.

Here are the five key reasons behind today’s market correction:

1. Global Market Weakness

Global markets, particularly in Asia and Europe, showed signs of risk aversion due to renewed concerns around inflation, US Fed rate outlook, and uncertainty surrounding geopolitical developments. This prompted investors to adopt a cautious stance, triggering selling pressure in Indian equities.

2. IT Sector Drag

Information Technology stocks led the decline, following disappointing earnings guidance and margin pressures from major players. The Nifty IT index dropped over 1.5%, dragging down broader market indices. Persistent weakness in the US tech sector also affected domestic sentiment.

3. FII Selling

Foreign institutional investors (FIIs) were net sellers in today’s session, pulling out capital amid global uncertainty and profit-booking. The recent rally in Indian markets had made valuations relatively stretched, prompting FIIs to reduce exposure.

4. Citi Downgrade of Indian Market

Global investment bank Citi downgraded Indian equities to ‘neutral’, citing stretched valuations and concerns about the market rally sustaining at current levels. This downgrade spooked investors and led to a sell-off in frontline stocks.

5. Pre-Expiry Volatility

Being the start of the expiry week for July derivatives, markets witnessed heightened volatility. Traders opted to unwind positions ahead of the expiry on Thursday, leading to increased intraday pressure and a broad-based decline.

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Market Outlook

While the correction today reflects near-term caution, analysts remain optimistic about India’s long-term growth story. However, market participants are advised to remain selective, focus on quality stocks, and brace for continued volatility in the short term.

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In a strategic move to expand its footprint in the consumer durables segment, Reliance Retail Ventures Ltd (RRVL) has acquired the iconic home appliances brand Kelvinator India. The acquisition is expected to significantly boost Reliance Retail’s presence in the white goods and home appliances market, a sector poised for rapid growth in the coming years.

About the Acquisition

The acquisition was executed through Reliance’s subsidiary, Reliance Retail Limited, which will now hold the rights to the Kelvinator brand in India. This deal includes ownership of trademarks, patents, and brand equity, enabling Reliance to relaunch and scale Kelvinator’s offerings in the domestic market.

Strategic Importance

Kelvinator, a brand with over 100 years of global legacy, was once a household name in India for refrigerators and home appliances. With this acquisition, Reliance aims to:

• Reintroduce Kelvinator-branded products across India.
• Expand its own portfolio of affordable and mid-range consumer appliances.
• Compete with global brands like LG, Samsung, and Whirlpool in the home appliances segment.

Reliance’s Broader Vision

This acquisition aligns with Reliance’s broader strategy of dominating India’s retail and consumer electronics space. By reviving Kelvinator, Reliance can leverage its vast retail network—including Reliance Digital, JioMart, and offline outlets—to aggressively distribute these products at scale.

The company has already made moves in the consumer durables category with in-house brands and strategic partnerships. The addition of Kelvinator brings brand recognition and legacy value, which could fast-track market penetration, especially in tier-2 and tier-3 cities.

Market Outlook

India’s consumer durables market is projected to grow at a CAGR of over 10% in the coming years, driven by rising disposable incomes, urbanization, and demand for energy-efficient appliances. The acquisition of a trusted legacy brand positions Reliance to capitalize on this trend more effectively.

Conclusion

Reliance Retail’s acquisition of Kelvinator marks a bold step towards capturing a larger share of India’s appliance market. With an established brand, a massive retail network, and deep market penetration, Reliance is well-placed to disrupt the consumer durables space in the near future.

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Shares of Indian solar companies such as Waaree Energies, Premier Energies, and SW Solar witnessed a decline of up to 4% in Monday’s trade following reports that several U.S.-based solar manufacturers have petitioned the U.S. government to impose tariffs on solar imports from India.

What Triggered the Fall?

According to recent filings, a coalition of American solar manufacturers has submitted a formal request to the U.S. International Trade Commission (USITC) and the U.S. Department of Commerce, urging them to initiate anti-dumping and countervailing duty investigations into crystalline silicon photovoltaic (CSPV) cells and modules imported from India and four other countries.

This move is part of a broader push to protect the U.S. solar manufacturing industry amid growing reliance on low-cost imports. India, in recent years, has emerged as a key exporter of solar panels to the U.S., benefiting from lower manufacturing costs and government support for renewables.

Impact on Indian Stocks

The stocks most affected included:

• Waaree Energies – down nearly 4%
• Premier Energies – fell around 3.5%
• SW Solar – slipped approximately 3%

Investors are concerned that the imposition of tariffs by the U.S., a major export market for Indian solar panel makers, could severely impact revenue and margins.

Industry Reaction

Industry experts believe the petition, if accepted, could lead to a new wave of protectionist measures that would disrupt global solar supply chains. Indian exporters may be forced to either shift focus to other regions or absorb higher costs to maintain competitiveness in the U.S. market.

What’s Next?

The U.S. Department of Commerce is expected to review the petition and decide whether to initiate a formal investigation. If approved, preliminary duties could be imposed in the coming months, adding uncertainty to export outlooks for Indian solar manufacturers.

Conclusion

While the long-term fundamentals of India’s renewable energy sector remain strong, this development highlights the risks associated with over-reliance on a single export market. Investors should closely monitor regulatory developments in the U.S. before making any decisions regarding solar-related stocks.

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Indian markets closed on a weak note on Thursday’s weekly F&O expiry. The Sensex ended nearly 350 points lower at 82,259, while the Nifty managed to stay slightly above the 25,100 mark, closing at 25,111. The broader market showed relative resilience, but sentiment was weighed down by IT sector losses and a cautious stance from global investors.

Key Factors Behind Market Movement

• IT Sector Pressure: Shares of Tech Mahindra and other major IT players fell after underwhelming Q1 earnings. This contributed significantly to the day’s losses, with the Nifty IT index closing over 1% lower.
• Global Concerns: Market participants remain cautious due to ongoing uncertainty around the US Federal Reserve’s leadership and monetary policy direction. These factors are likely to impact global capital flows in the coming weeks.
• Citi Downgrade: Citigroup downgraded Indian equities from “overweight” to “neutral,” citing high valuations and limited near-term upside. It noted better relative opportunities in other Asian markets like China and South Korea.

Sectoral Highlights

• Underperformers: IT, banking, and infrastructure stocks dragged indices lower.
• Outperformers: Nifty Realty and Metals indices posted modest gains. The broader mid-cap and small-cap indices also remained resilient, indicating selective buying.

Technical View

Analysts noted that Nifty continues to find support around 25,100–25,150. However, a sustained breach below this level could lead to further downside towards 25,000 or even 24,900. Resistance in the short term is seen near the 25,300–25,350 zone.

Outlook

Market direction in the coming sessions will largely depend on upcoming earnings reports, especially from the IT sector, along with cues from global central banks. Additionally, any signals on trade or investment policy shifts may also influence sentiment.

Conclusion

Despite holding a crucial support level, Indian markets are showing signs of fatigue amid mixed earnings and global uncertainties. Investors are advised to stay cautious and maintain a selective approach in the short term.

Eqwires Research Analyst

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info@eqwires.com

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Call: +91 9624421555 / +91 9624461555

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