Forecast: India's Rise to 4th Largest Economy

• Indian stock market benchmarks—the Sensex and Nifty 50—rose for the second straight session on Monday, May 26, closing with solid gains led by heavyweights like ICICI Bank, ITC, and Reliance Industries.

• Analysts attributed the rally to a series of positive developments, including India overtaking Japan to become the world’s fourth-largest economy, boosting investor sentiment.

• The Reserve Bank of India’s record ₹2.11 lakh crore dividend to the government also supported the market by easing fiscal concerns and reinforcing a positive macroeconomic backdrop marked by low inflation and falling interest rates.

• Improving global trade sentiment, driven by the US extending trade talks with the EU and easing tariff worries, further lifted mood. An early start to the monsoon added to the upbeat outlook.

Gilette India +6.96%

• Gillette India's share price surged nearly 7% after the company announced a 60% year-over-year increase in profit to ₹159 crore for Q3 FY25.

• The board also recommended a dividend of ₹47 per equity share, contributing to investor optimism.

Eternal (4.59%)

• Eternal's share price fell due to expected significant passive outflows.

• This follows index weightage cuts by FTSE Russell and MSCI, which were a result of a reduction in Eternal's foreign ownership limit from 100% to 49.5%. Estimates suggest potential outflows of around $840 million.

• RBI announced record 2.69 lakh crore dividend fuelled by dollar gains, interest income. (ET)

• India to become 4th largest economy by end of 2025: NITI Aayog. (ET)

• RBI said to be seeking approval for overseas rupee lending to neighbours. (ET)

• MFI portfolio continues to de-grow, asset quality remains challenging: Report. (ET)

• VC funding, influencers power India’s health supplements craze amid lingering safety concerns. (ET)

• Prostarm Info Systems raises ₹50 crore ($5.8Mn) via anchor book for its IPO. (MC)

• Leela Hotels IPO was subscribed 6% on Day 1, retail portion booked 20%. (MC)

• Aegis Vopak IPO subscribed 26% on Day 1, led by QIB and retail investors. (MC)

• Groww files confidential DRHP with SEBI. (EN)

This week’s mainboard IPO schedule

• Schloss Bangalore

  • Offering Period: 26 May - 28 May, 2025

  • Listing Date: 02 June, 2025

  • Issue Price: 413-435

  • Lot Size: 34

• Aegis Vopak Terminals

  • Offering Period: 26 May - 28 May, 2025

  • Listing Date: 02 June, 2025

  • Issue Price: 223-225

  • Lot Size: 63

• Prostarm Info Systems

  • Offering Period: 27 May - 29 May, 2025

  • Listing Date: 03 June, 2025

  • Issue Price: 95-105

  • Lot Size: 142

• Scoda Tubes

  • Offering Period: 28 May - 30 May, 2025

  • Listing Date: 04 June, 2025

  • Issue Price: 130-140

  • Lot Size: 100

M&A / Investments

• JSW Paints To Acquire 74.7% Stake In Akzo Nobel India For ₹10,000 crore ($1.1Bn). (BW)

• IndiGo promoter Rakesh Gangwal likely to sell ₹6,831 ($802Mn) crore stake (~3.4%) via block deal. (Mint)

• SBI Life, Vidyaniti acquire 4.25% stake in NHIT for ₹1,100 crore ($129Mn) . (BS)

• Drools, a pet food brand, claims unicorn status after Nestlé acquired a minority stake. (MC)

Debt

• Mufin Green secures ₹153 crore ($18Mn) to scale EV loans for MSMEs. (YS)

VC/Funds

• Quadria's third fund has secured ₹8500 crore ($1Bn), with 60% earmarked for deployment in India. (ET)