New Delhi, October 22 (IANS). Due to strong macroeconomic indicators, domestic stock markets have registered a rise. India’s economy grew 7.8 percent year-on-year in the first quarter of FY26, the strongest growth in the last five quarters. This information was given in a report on Wednesday.
The services sector PMI rose to 62.9 in August 2025, its highest in 15 years, on the back of sharp growth in new orders and strong demand.
“Sentiments were boosted by the GST Council simplifying the existing four tax slabs into a two-rate structure of 5 per cent and 18 per cent and proposing a special slab of 40 per cent for select luxury items such as expensive cars, tobacco and cigarettes,” ICRA Analytics said in its report.
Stock markets rose after the US Federal Reserve cut its first interest rates of the year in September, citing recent weakness in the labor market.
However, overall gains remained limited due to uncertainty over India-US trade talks and continued withdrawal of foreign institutional investors from domestic stock markets.
Meanwhile, according to a recent report, the trends observed in the equity mutual fund category till September this year, all categories of equity mutual funds delivered positive category average returns across 3, 5 and 10 year periods; Small cap funds delivered maximum category average returns over 5 and 10 year periods. Large cap funds delivered negative category average returns of around 4.92 per cent over a period of 1 year.
Similarly, trends were also seen in the debt mutual fund category this month. Credit Risk Fund gave maximum average returns over 6-year, 1-year, 3-year and 5-year periods. Short duration fund gave the highest average return (18.57 percent) in 1 month.
All categories of debt mutual funds delivered positive returns in tenures of 1, 3, 5 and 10 years. Moreover, credit risk funds gave maximum average returns over 6-month, 1, 3 and 5 year periods.
–IANS
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