The Indian stock market closed out a volatile week ending June 13, 2025, marked by geopolitical jitters, monetary policy cues, IPO enthusiasm, and shifting investor behavior. Market indices oscillated throughout the week, reflecting alternating optimism from the RBI’s 50 basis point repo rate cut and nervousness due to geopolitical tensions in the Middle East. While frontline indices showed mixed returns, sectoral rotations, fund flows, and IPO activities remained in sharp focus.
Highlights:
Market remained range-bound due to RBI rate action and Israel-Iran tensions.
Retail and institutional flows showed preference for arbitrage funds and selective IPOs.
Weekly movements showcased divergent trends across asset classes and investment instruments.
Arbitrage Funds Record 33% Surge in May Inflows as Investors Eye Tax-Efficient Stability
Arbitrage mutual funds posted an impressive 33% growth in inflows during May, underscoring rising demand for low-risk, tax-advantaged investment avenues. These hybrid funds, which exploit pricing inefficiencies between the cash and futures markets, gained traction as a smart vehicle for capital preservation, short-term gains, and liquidity management.
The tax treatment of arbitrage funds—equity-style taxation after 1 year—has proven particularly appealing to conservative investors amid uncertain equity and bond markets. As market volatility persists, these funds offer a non-directional equity exposure that balances portfolio risks while yielding more favorable post-tax returns compared to traditional fixed-income products.
Growing awareness among both retail and institutional investors has fueled this trend, reinforcing arbitrage funds’ role in providing liquidity buffers and stability. Their strong performance profile and relatively low NAV fluctuations are increasingly being viewed as essential components in diversified portfolios.
Highlights:
Arbitrage fund inflows up 33% in May.
Demand driven by equity-like taxation and lower volatility.
Preferred by conservative investors for idle short-term capital allocation.
Oswal Pumps IPO Sees Partial Oversubscription; Strong Fundamentals and Expansion Plans Impress Investors
The Oswal Pumps IPO closed with an oversubscription of 0.34 times, indicating modest yet positive investor sentiment toward the company’s offerings. Known for its dominance in water pump and motor manufacturing, Oswal Pumps has outlined plans to deploy proceeds into capacity expansion, technology upgrades, and working capital support.
Retail and HNI categories drove most of the subscription, buoyed by Oswal’s robust distribution network, proven performance history, and export growth potential. The company’s plans to strengthen its position in both domestic and global pump markets align with rising infrastructure and agricultural demand.
This IPO marked a strategic step in Oswal’s trajectory toward institutional visibility and future scalability. Despite subdued broader market sentiment, its successful IPO placement reflected sector-specific confidence and retail-driven momentum.
Highlights:
IPO oversubscribed by 0.34x; retail interest strong.
Proceeds aimed at capex, tech advancement, and working capital.
Oswal poised for international growth in pump technologies.
NFO Action Picks Up: Thematic, Index-Based, and Digital Economy Strategies Dominate Launches
Three major Asset Management Companies (AMCs)—Baroda BNP Paribas, ICICI Prudential, and Groww AMC—launched new fund offers (NFOs) this week, reflecting investor appetite for thematic, index-aligned, and tech-focused exposure. These offerings cater to evolving trends across wellness, blue-chip equity, and the digital economy.
Baroda BNP Paribas introduced its Health & Wellness Fund, which invests in pharmaceuticals, diagnostics, and lifestyle improvement sectors, capitalizing on post-pandemic healthcare awareness and demographic shifts.
ICICI Prudential’s Nifty Top 15 Equal Weight Index Fund allows investors to tap into India’s leading companies using an equal-weight strategy, reducing risk concentration while capturing blue-chip performance.
Meanwhile, Groww AMC’s Nifty India Internet ETF FoF targets India’s digital revolution, investing in e-commerce, fintech, and internet-driven platforms, aimed at aggressive growth-seekers exploring the next phase of technology-driven consumption.
Highlights:
Baroda BNP Paribas NFO: Health & Wellness Fund focuses on pharma and diagnostics.
ICICI Prudential NFO: Equal-weight Nifty Top 15 fund offers diversification.
Groww AMC NFO: Internet ETF FoF rides India’s tech and digital adoption wave.
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