Festive Fireworks: Equity Markets Touch Record ₹450 Lakh Crore Milestone
Diwali Muhurat Trading on October 21, 2025, wasn’t just symbolic—it ignited a ₹5 lakh crore surge in market cap, pushing BSE Sensex to 82,030 and Nifty 50 to 25,145. As per NSE data, retail participation hit 18 crore unique investors, up 25% YoY, with demat accounts crossing 17 crore. Mirae Asset and Sharekhan’s Diwali picks—Maruti, HAL, L&T—gained 5-8% overnight, underscoring optimism.
This boom ties subtly to easing business loan interest rates, freeing corporate capex. “Lower borrowing costs mean higher capex, juicing earnings,” says Motilal Oswal’s Raamdeo Agrawal. Mutual fund AUM soared to ₹72.19 lakh crore in May 2025, per AMFI, with equity inflows at ₹45,000 crore in September alone—69% drop in sectoral funds notwithstanding, focused funds like SBI Magnum Hybrid shone.
Google Trends shows “Diwali investments 2025” spiking 60% in Finance category, mirroring X buzz with #DiwaliPortfolio trending at 1.2 lakh posts.
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Mutual Funds vs. ETFs: Which Delivers the Edge in 2025?
Mutual funds dominate: Equity schemes netted ₹2.5 lakh crore inflows in H1 FY26, per AMFI. Top performers? Parag Parikh Flexi Cap returned 22% YTD, beating Nifty by 8 points, thanks to 35% global allocation hedging rupee volatility. Comparisons: Active funds averaged 18% vs. passive ETFs’ 15%, but ETFs like Nippon India Nifty 50 (0.05% expense) win on costs.
A Bengaluru investor, Neha Patel, shared on Reddit: “Shifted ₹5 lakh to HDFC Mid-Cap Opportunities post-Diwali; up 12% already.” Women investors, now 30% of Zerodha’s base (up from 10% in 2015), favor SIPs—₹20,000 crore monthly, per NSE.
ETFs, though, are rising: Gold ETFs gained 18% amid ₹75,000/10g prices, per MCX. “ETFs suit tactical plays,” notes ETF king Prashant Jain.
Tax-Saving Stars: PPF and ELSS in the Spotlight
Beyond equities, small savings shine. PPF rates hold at 7.1% for Q4 2025, tax-free, with ₹25 lakh corpus potential on ₹1.5 lakh annual investment over 15 years. “Beat inflation hands-down,” per a viral ET op-ed with 20K shares.
ELSS funds offer 10-12% returns with 3-year locks, deducting ₹1.5 lakh under 80C. Axis ELSS Tax Saver returned 19% YTD, drawing ₹15,000 crore inflows. Reactions? Finance Twitter exploded: “ELSS > FD in this low-rate world,” tweeted 50K-follower influencer Ankur Warikoo.
Business loan linkage? Cheaper credit spurs SME IPOs, like unlisted shares dipping 10% pre-listing but rebounding post—per ET reports.
Risks Amid the Rally: FII Outflows and Valuation Traps
Caution flags: FIIs yanked ₹4,285 crore in October amid high PE ratios (Nifty at 24x forward earnings). “Valuations stretched,” warns CLSA. Yet, DIIs plugged gaps with ₹25,000 crore buys.
Stress tests show resilience: Market cap-to-GDP at 130%, highest since 2007, but corporate earnings up 15% YoY buffer it.
2025 Outlook: 15% Returns Beckon with Diversification
Analysts forecast 12-15% equity returns, driven by 7% GDP. “Diversify: 60% equity, 20% debt, 20% gold,” advises Groww’s CEO. Festive gold schemes via MMTC-PAMP saw 30% uptake, rates at 8.2% for SGBs.
As one X user quipped: “Diwali lit my portfolio—now watching it glow.” With 170 million demats, India’s investment democratizing fast.
3 Bullet-Point Highlights (Key Takeaways)
Safe Bets: PPF at 7.1% tax-free edges FDs; ELSS offers 19% returns with 80C benefits for tax savers.
Equity Surge: Nifty up 15% YTD on Diwali trades, with mid-caps like L&T yielding 20%+ via targeted funds.
Inclusive Growth: Women at 30% investor base drive ₹20K cr monthly SIPs, boosting AUM to ₹72 lakh cr.
Also Read Best Mutual Funds To Invest In 2025
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