Adani Power Secures LOI to Acquire Reliance’s Vidarbha Industries Power

Adani Power Limited (APL) informed the stock exchanges that it has received a Letter of Intent (LOI) to acquire Vidarbha Industries Power Limited, a subsidiary of Reliance Power.

Vidarbha Industries Power is currently undergoing the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC) 2016. The company owns and operates a 2×300 MW thermal power plant located in the MIDC Industrial Area of Butibori, Nagpur.

Approval of Resolution Plan

As part of the resolution process, Adani Power was selected as the successful resolution applicant, and its resolution plan was approved by the Committee of Creditors (CoC). On February 24, 2025, APL received the LOI from the Resolution Professional (RP), marking a key step in the acquisition process.

Regulatory Approvals and Next Steps

The completion of this acquisition is subject to necessary approvals from the National Company Law Tribunal (NCLT), Mumbai, and other regulatory authorities. Once finalised, the acquisition will further strengthen Adani Power’s presence in the thermal energy segment. The resolution plan will be executed as per the LOI’s terms and legal requirements, ensuring compliance with the CIRP framework.

Conclusion

The acquisition of Vidarbha Industries Power marks another significant step in Adani Power’s expansion. The deal now awaits regulatory approvals for completion.

On February 25, 2025, Adani Power share price opened at ₹470.10, the same as its previous close of ₹470.10. At 10:25 AM, the share price of Adani Power was trading at ₹486.60, up by 3.51% on the NSE.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

PM-KISAN Completes 6 Years, ₹3.5 Lakh Cr Disbursed to Farmers

On February 24, Prime Minister Shri Narendra Modi extended warm congratulations to farmers across the country on the 6th anniversary of the PM Kisan Samman Nidhi Yojana, a landmark initiative aimed at providing financial assistance to farmers.

Since its inception, the scheme has significantly contributed to the welfare and empowerment of the agricultural community. The Prime Minister expressed satisfaction that ~₹3.5 lakh crore has been transferred to farmers’ accounts under the scheme.

19th Installment of PM-KISAN Released

To mark the occasion, the 19th installment of PM-KISAN was released by Prime Minister Modi in Bhagalpur, Bihar, benefiting over 9.8 crore farmers, including 2.41 crore female farmers. A total of ₹22,000 crore was disbursed through Direct Benefit Transfer (DBT), ensuring transparency and eliminating middlemen.

Union Minister for Petroleum and Natural Gas, Shri Hardeep Singh Puri, while attending the event, emphasised that farmers’ welfare remains a top priority for the government. He lauded their role as the backbone of the economy and custodians of food security.

Strengthening PM-KISAN: New Beneficiaries and Increased Credit Limit

In a significant development, 30 lakh more farmers have been added as beneficiaries under PM-KISAN. The Union Minister also announced an increase in the Kisan Credit Card (KCC) limit from ₹3 lakh to ₹5 lakh, facilitating better access to credit. This enhancement will help farmers invest in modern agricultural techniques, buy better equipment, and improve productivity.

Launch of PM Dhan Dhanya Krishi Yojana

Union Minister Dr Jitendra Singh also introduced the PM Dhan Dhanya Krishi Yojana, a new initiative aimed at boosting agricultural advancement. The scheme focuses on 100 districts across India, ensuring targeted resource allocation, modern technology adoption, and increased productivity in these areas.

Conclusion

With the ₹3.46 lakh crore already disbursed in 18 installments, PM-KISAN continues to play a pivotal role in rural economic growth. 

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

SpiceJet Share Price in Focus Ahead of Q2 and Q3 FY 2025 Financial Results

SpiceJet Limited is in focus on Tuesday ahead of the Q2 and Q3 FY 2025 financial results announcement. On February 25, 2025, SpiceJet share price opened at ₹47.48, almost the same as its previous close of ₹47.17. At 10:03 AM, the share price of SpiceJet was trading at ₹47.74, up by 1.21% on the BSE. Notably, the stock touched its 52-week low at ₹39.91 recently on February 18, 2025.

Board Meeting Announcement

The company announced that the Board of Directors of the company will meet on February 25, 2025 (Tuesday) to consider and approve the unaudited standalone and consolidated financial results for the second quarter ended September 30, 2024, and the third quarter ended December 31, 2024.

Financial Performance in Q1 FY 2025

For the quarter ended June 30, 2024, the company’s total income stood at ₹20,777.72 million, compared to ₹23,747.23 million in the previous quarter ended March 31, 2024, and ₹22,668.69 million in the corresponding quarter of the previous year. The total income for the financial year ended March 31, 2024, was ₹85,240.34 million.

The profit/loss for the quarter ended June 30, 2024, was ₹1,581.85 million, showing an improvement from ₹1,268.74 million in the previous quarter but lower than ₹1,976.25 million recorded in the same quarter last year. For the full financial year ended March 31, 2024, the company reported a loss of ₹4,237.15 million.

About SpiceJet Ltd

SpiceJet Ltd is mainly involved in the business of providing air transport services for the carriage of passengers and cargo.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Torrent Power Expands Green Energy Portfolio with New SPVs

Torrent Power Limited has informed the stock exchanges about the incorporation of multiple new subsidiaries under its wholly owned subsidiary, Torrent Green Energy Private Limited (TGEPL).

Incorporation of Torrent Urja 32 Private Limited

TGEPL incorporated Torrent Urja 32 Private Limited (TU32) as a wholly owned subsidiary on February 12, 2025, and received its Certificate of Incorporation from the Ministry of Corporate Affairs on February 21, 2025. The company officially received intimation about the incorporation on February 24, 2025.

The company stated that TU32 operates in the renewable energy sector, specifically focusing on electricity generation from non-conventional energy sources. The newly incorporated entity will engage in the production, processing, and trading of hydrogen and its derivatives, including ammonia and compressed natural gas. Additionally, TU32 will participate in power generation, transmission, distribution, and trading across various green and renewable energy segments.

The acquisition cost of TU32 stands at ₹5,00,000, comprising 50,000 equity shares of ₹10 each.

Further Expansion: Three More Subsidiaries Incorporated

In a further push towards its renewable energy goals, TGEPL has also incorporated three additional special purpose vehicles (SPVs) on February 24, 2025:

  • Torrent Urja 33 Private Limited
  • Torrent Urja 34 Private Limited
  • Torrent Urja 36 Private Limited

Similar to TU32, these SPVs will focus on manufacturing, processing, refining, and trading hydrogen, ammonia, and related derivatives. They will also engage in power generation, distribution, and storage, contributing to India’s transition toward sustainable and green energy solutions.

Conclusion

Torrent Power has been actively investing in renewable energy projects to support India’s green energy goals. The establishment of these subsidiaries is expected to enhance the company’s capabilities in hydrogen energy while strengthening its portfolio in clean power generation.

On February 25, 2025, Torrent Power share price opened at ₹1,300.10, touching the day’s high at ₹1,321.55, as of 9:44 AM on the NSE.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Swasth Foodtech IPO Allotment Status Today; Shares To Be Credited on Feb 27

Swasth Foodtech IPO, one of the upcoming IPOs, allotment status is set for today, Tuesday, February 25, 2025. You can check the allotment status on the registrar’s website, Mas Services Limited, as well as on the BSE website.

Successful bidders can expect the shares to be credited to their demat accounts on February 27, 2025. Those who did not receive an allotment will likely receive refunds on the same day.

Swasth Foodtech IPO Subscription Status

Swasth Foodtech IPO was opened on February 20, 2025 and closed on February 24, 2025. As of February 24, 2025, 6:19 PM, the IPO achieved an overall subscription of 7.83 times. The non-institutional investor (NII) and retail investor portions saw subscriptions of 2.53 times and 13.12 times, respectively.

Details of the Swasth Foodtech India Limited IPO

Swasth Foodtech IPO was a fixed price issue totalling ₹14.92 crore. The issue is a fresh issue of 15.88 lakh shares.

The price band for the IPO was set at ₹94 per share. The minimum lot size for an application was 1,200. The minimum amount of investment required by retail investors was ₹1,12,800.

Swasth Foodtech shares are scheduled to be listed on the BSE SME platform on Friday, February 28, 2025.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Top Gainers and Losers on February 24, 2025: M&M & Hero MotoCorp Shine

On February 24, 2025, the Indian stock market benchmark index BSE Sensex and Nifty ended in the red. The BSE Sensex was down by 1.14% closing at 74,454.41, while the Nifty50 was down by 1.06% at 22,553.35. Among sectors, the Nifty IT and Nifty Metal declined by over 2% each.

Top Gainers of the Day

Symbol LTP (₹) Change(%)
M&M 2,710.5 1.54
DRREDDY 1,164.9 1.14
EICHERMOT 5,016.65 1.09
HEROMOTOCO 3,884 0.82
NESTLEIND 2,225 0.45

  • Mahindra & Mahindra (M&M)

M&M share price rose by 1.54%. The share price opened at ₹2,669.00 and touched its day’s high at ₹2,716.80.

  • Dr. Reddy’s Laboratories

Dr. Reddy’s Laboratories share price surged 1.14% after opening at ₹1,151.80. The stock hit the day’s high of ₹1,173.90.

  • Eicher Motors

Eicher Motors share price gained 1.09% after opening at ₹4,936.00. The stock touched the day’s high at ₹5,049.90.

  • Hero MotoCorp

Hero MotoCorp share price rose 0.82% after opening at ₹3,839.85. The stock touched its day’s high at ₹3,891.10.

  • Nestle India

Nestle India share price surged 0.45% after opening at ₹2,199.00. It hit a day’s high of ₹2,237.85.

Top Losers of the Day

Symbol LTP (₹) Change(%)
WIPRO 295 -3.70
HCLTECH 1,642.75 -3.41
TCS 3,671 -3.04
INFY 1,763 -2.87
BHARTIARTL 1,600 -2.39

  • Wipro

Wipro share price dropped 3.70%. The stock opened at ₹302.95 and touched its day’s low at ₹293.35.

  • HCL Technologies

HCL Technologies share price slipped 3.41%. The share price opened at ₹1,685.00 and touched its day’s low at ₹1,637.60.

  • TCS

TCS share price fell 3.04%. The share price opened at ₹3,743.15 and touched its day’s low at ₹3,670.00.

  • Infosys

Infosys share price slipped 2.87%. The share price opened at ₹1,800.05 and touched its day’s low at ₹1,750.25.

  • Bharti Airtel

Bharti Airtel share price slipped 2.39%. The share price opened at ₹1,627.00 and touched its day’s low at ₹1,598.00. Bharti Airtel has partnered with Apple to offer Airtel customers access to Apple TV+ streaming services and Apple Music.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Best Ethanol Stocks For March 2025 Based on 5Y CAGR: Piccadily Agro Industries, EID Parry and More

The Indian sugar industry plays an important role in the rural economy, supporting millions of sugarcane farmers and offering employment to about 5 lakh workers in sugar mills. As the largest global consumer and 2nd largest producer of sugar, India’s sugar sector provides significant growth opportunities for investors. In this article, find the best sugar sector stocks in India for March 2025, picked based on their 5-yr CAGR and other parameters like net profit margin and debt to equity ratio.

Best Ethanol Stocks in March 2025 – Based on 5yr CAGR

Name 5Y CAGR (%) Market Cap (₹ in crore) 1Y Return (%)
Piccadily Agro Industries Ltd 139.11 5,817.43 67.64
Triveni Engineering & Industries Limited 36.29 8,271.06 7.82
EID Parry (India) 27.56 12,371.74 8.84
Balrampur Chini Mills Ltd 23.88 9,697.37 26.08
Bannari Amman Sugars Ltd 19.17 4,389.40 29.70

Note: The best sugar stocks list provided here is as of February 24, 2024. The stocks selected have a market cap of more than ₹1,000 crore, with positive 1-year returns and are sorted as per their 5-yr CAGR.

Overview of the Best Ethanol Stocks in March 2025

1. Piccadily Agro Industries Ltd

Piccadily Agro Industries Ltd (PAIL) is involved in the manufacturing and selling of malt spirits in India. The company is also engaged in the manufacturing of ethanol, Extra Neutral Alcohol (ENA), and white crystal sugar. On a standalone basis, the company recorded a Profit After Tax (PAT) of ₹25.04 crore in Q3 FY24-25, reflecting a 32.14% growth. EBITDA stood at ₹50.86 crore, marking a 46.07% increase compared to Q3 FY23-24. The company’s total revenue for the quarter reached ₹208.32 crore, while the Net Profit Margin improved to 12.02%, reflecting a year-on-year growth of 21.78%.

Key metrics:

  • Return on Capital Employed (ROCE): 37.40%
  • Return on Equity (ROE): 38.43%

2. Triveni Engineering and Industries Ltd

Triveni Engineering and Industries Ltd is amongst the largest Indian integrated sugar manufacturers. For the quarter ended December 31, 2024, the company reported a total income of ₹1,624.20 crore, compared to ₹1,762.01 crore in the previous quarter (September 30, 2024) and ₹1,575.55 crore in the same quarter last year. The company’s profit for the quarter stood at ₹42.57 crore, recovering from a loss of ₹22.42 crore in the previous quarter. However, it was significantly lower than the ₹137.40 crore profit reported in the corresponding quarter of the previous year.

Key metrics:

  • ROCE: 17.59%
  • ROE: 14.20%

3. E I D-Parry (India) Ltd

E.I.D. Parry (India) Limited (E.I.D. Parry) is involved in the manufacturing of sugar in India. The company belongs to the Murugappa Group. For the quarter ended December 31, 2024, consolidated revenue from operations stood at ₹8,720 crore, reflecting a 12% increase compared to ₹7,770 crore in the same quarter of the previous year. Consolidated profit after tax and non-controlling interest came in at ₹195 crore, up from ₹118 crore in the previous year’s corresponding quarter.

Key metrics:

  • ROCE: 20.33%
  • ROE: 8.67%

4. Balrampur Chini Mills Ltd

Balrampur Chini Mills Limited (BCML) is amongst the largest Indian integrated sugar companies. For the quarter ended December 2024, revenue from operations stood at ₹1,192.15 crore, reflecting a 3.1% decline compared to ₹1,230.39 crore in the same quarter of the previous year. EBITDA (excluding other income) for the quarter was ₹123.78 crore, registering a 9.2% increase from ₹113.39 crore in the corresponding period last year.

Key metrics:

  • ROCE: 20.82%
  • ROE: 16.98%

5. Bannari Amman Sugars Ltd

Bannari Amman Sugars Limited is amongst the leading sugar manufacturers in India. For the quarter ended December 31, 2024, the total income stood at ₹42,284.64 lakh, compared to ₹47,536.44 lakh in the previous quarter and ₹76,969.78 lakh in the corresponding quarter of the previous year. The net profit for the quarter was ₹2,881.08 lakh, down from ₹3,426.69 lakh in the previous quarter and ₹6,806.54 lakh in the same period last year.

Key metrics:

  • ROCE: 13.71%
  • ROE: 9.40%

Best Ethanol Stocks in March 2025 Based on Net Margin

Name Market Cap (₹ in crore) Net Profit Margin (%)
Piccadily Agro Industries Ltd 5,817.43 13.56
Balrampur Chini Mills Ltd 9,697.37 9.22
Dalmia Bharat Sugar and Industries Ltd 2,737.77 9
Triveni Engineering & Industries Limited 8,271.06 7.48
Bannari Amman Sugars Ltd 4,389.40 6.84

Note: The best sugar stocks list provided here is as of February 24, 2024. The stocks selected have a market cap of more than ₹1,000 crore and are sorted as per their net profit margin.

Best Ethanol Stocks in March 2025 Based on Debt to Equity Ratio

Name Market Cap (₹ in crore) Debt to Equity (%)
EID Parry (India) 12,371.74 0.16
Bannari Amman Sugars Ltd 4,389.40 0.29
Dalmia Bharat Sugar and Industries Ltd 2,737.77 0.49
Triveni Engineering & Industries Limited 8,271.06 0.49
Piccadily Agro Industries Ltd 5,817.43 0.51

Note: The best sugar stocks list provided here is as of February 24, 2024. The stocks selected have a market cap of more than ₹1,000 crore and are sorted as per their debt to equity ratio.

Should You Invest in Ethanol Stocks?

Investing in ethanol stocks requires thorough analysis, as the sector faces potential risks such as commodity price fluctuations, regulatory changes, and competition from alternative energy sources. While the industry can hold a strong growth potential, stock performance can be influenced by policy shifts, market conditions, and technological advancements.

Conclusion

Ethanol, a versatile fuel, holds significant potential to drive positive change. Its widespread adoption can contribute to substantial savings on oil imports while promoting environmental sustainability. However, before investing in leading ethanol stocks in India, it is crucial to evaluate the various factors influencing the market.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

India’s First Offshore Airport to Be Built Near Mumbai

India is set to develop its first offshore airport near Mumbai as part of the government’s broader vision to modernise the country’s infrastructure.

The ambitious project, expected to be located on an artificial island near the Vadhvan seaport on India’s west coast, will mark a significant milestone in India’s aviation sector. Inspired by international models such as Hong Kong International Airport and Osaka’s Kansai International Airport, both built on man-made islands, the new airport aims to enhance Mumbai’s air traffic capacity and support economic growth.

Strategic Location and Government Approvals

The offshore airport will be situated ~125 kilometres from Mumbai’s Chhatrapati Shivaji Maharaj International Airport (CSMIA) and will cater to increasing air traffic demands in the region. According to news reports, the project has received preliminary approvals from the federal environment and defence ministries, as well as the Maharashtra state government. The Airports Authority of India (AAI) will oversee feasibility studies to assess the viability of the project. Once these studies are completed, the estimated investment cost will be determined.

Prime Minister Narendra Modi first hinted at the development of the Vadhvan airport during an election rally in Maharashtra in November 2024. The project aligns with the government’s commitment to expanding the country’s transportation network and reducing congestion at existing airports.

Connectivity and Infrastructure Development

The Vadhvan airport will be well-integrated with key transportation infrastructure, enhancing accessibility for travellers. A high-speed rail corridor, including the Mumbai-Ahmedabad bullet train, will have a station near the airport, ensuring seamless connectivity. Additionally, major highways such as the New Delhi-Mumbai Expressway and the Mumbai-Vadodara Expressway will further improve accessibility. These developments will strengthen Mumbai’s position as a major transportation hub.

Challenges and Industry Concerns

Despite the promising prospects of the offshore airport, experts have raised concerns regarding its financial viability and passenger traffic demand. Mumbai is already home to two major airports: the well-established Chhatrapati Shivaji Maharaj International Airport and the under-construction Navi Mumbai International Airport (NMIA). CSMIA, located in the heart of Mumbai, is one of the busiest airports in India, handling millions of passengers annually. The Navi Mumbai International Airport, situated about 35 kilometres away, is expected to alleviate congestion and meet the growing demand for air travel.

The challenge for the Vadhvan airport will be to attract sufficient passenger traffic to justify the massive investment required for its construction. Many smaller airports across India have struggled with low passenger volume, raising questions about the economic feasibility of a third major airport serving the Mumbai metropolitan region.

Conclusion

The proposed offshore airport near Mumbai represents a bold step in India’s aviation and infrastructure development. While it promises to boost connectivity and reduce congestion at existing airports, its success will depend on careful planning, strategic investment, and sustained passenger demand.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

PI Industries Partners with C-CAMP to Advance Sustainable Agri-Tech

PI Industries Ltd (PI) has entered into a strategic collaboration with the Centre for Cellular And Molecular Platforms (C-CAMP), an initiative under the Department of Biotechnology, Ministry of Science and Technology, Government of India. This partnership aims to advance sustainable, nature-driven agricultural solutions, reinforcing India’s position as a leader in global agri-tech innovation.

Details of the Agreement

As part of the agreement, C-CAMP has exclusively transferred two groundbreaking biocontrol technologies, AphidControl and XanthoControl, to PI. These eco-friendly solutions offer an innovative approach to pest and disease management, reducing dependence on traditional chemical pesticides.

  • AphidControl is a botanical insecticide specifically designed to combat aphids, which can cause yield losses of up to 60% across various crops. By providing farmers with an effective and sustainable alternative, this technology has the potential to benefit over 25 million farmers.
  • XanthoControl is a biocontrol agent targeting the Xanthomonas species, a pathogen responsible for severe crop diseases leading to yield losses of up to 80%. This solution is expected to support over 45 million farmers in mitigating crop damage and improving agricultural productivity.

Expanding PI’s Biological Portfolio

This partnership aligns with PI’s broader vision of expanding its presence in the biological solutions sector. Over the past two years, the company’s biological product segment has witnessed a robust 45% revenue growth. The addition of C-CAMP’s cutting-edge technologies further strengthens PI’s integrated approach to sustainable agriculture.

Mayank Singhal, Vice Chairman and Managing Director, PI Industries Ltd, said, “As the world confronts the dual challenges of climate change and food security, biological solutions have transitioned from being an option to a necessity. Through our collaboration with C-CAMP, we are leveraging cutting-edge science to develop sustainable, nature-driven solutions that not only mitigate immediate agricultural threats but also pave the way for a more resilient and eco-friendly farming ecosystem. This partnership reinforces our commitment to innovation and sustainability while taking India’s scientific prowess to the global stage.”

On February 24, 2025, PI Industries share price opened at ₹1,158.00, up from its previous close of ₹1,131.85. At 10:16 AM, the share price of PI Industries was trading at ₹1,183.65, up by 4.58% on the NSE.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Understanding Nifty Total Market Index Funds and Their Benefits

A Nifty Total Market Index is a comprehensive index that tracks the performance of publicly traded companies across various market segments, including large-cap, mid-cap, and small-cap stocks. Unlike sector-specific or limited-scope indices, a total market index offers a broad representation of the overall stock market. In this article, learn about the working of the Nifty Total Market Index Fund and how beneficial it can be.

What is Market Capitalisation?

Before understanding the working of a Nifty Total Market Index Fund, let’s quickly learn what is market capitalisation, or market cap,

Market cap is the total value of a company’s outstanding shares. It is calculated using the formula:

Market Cap = Share Price × Number of Outstanding Shares

Companies are categorised into three main market cap segments, large-cap, mid-cap and small-cap. As per SEBI, large-cap companies include the top 100 firms (1st to 100th), mid-cap companies fall within the 101st to 250th ranks, and small-cap companies comprise those ranked 251st and beyond.

Working of Nifty Total Market Index Fund

A Nifty Total Market Index Fund is a type of mutual fund or exchange-traded fund (ETF) that follows a total market index. Investing in such a fund means owning a fraction of every company within the index, offering instant diversification across various stocks and sectors.

The Nifty Total Market Index is a broad-based index that tracks the performance of 750 stocks across large-cap, mid-cap, small-cap, and micro-cap segments. It comprises companies from both the Nifty 500 Index and the Nifty Microcap 250 Index. The stock weightage in the index is determined by free-float market capitalisation, meaning that larger companies have a greater influence on overall performance.

Benefits of a Nifty Total Market Index Funds

A Nifty Total Market Index Fund includes stocks from all market cap categories, providing investors with broad market exposure. Here’s why this approach is beneficial:

  • Diversification: A Nifty Total Market Index Fund can reduce risk as it invests across large, mid, and small-cap stocks. If one segment underperforms, gains in another can balance the portfolio.
  • Long-Term Growth Potential: While large-cap stocks can provide stability, mid- and small-cap stocks can offer growth potential. A Nifty Total Market Index Fund captures this mix, helping investors benefit from overall market expansion.
  • Lower Risk Compared to Individual Stocks: Investing in a single stock or sector can be risky. A Nifty Total Market Index Fund spreads investments across multiple industries and company sizes, reducing the impact of a single stock’s decline.
  • Simplicity in Investing: For investors who don’t want to track individual stocks, a Nifty Total Market Index Fund can offer an easy way to invest in the broader market without frequent adjustments.

Angel One Nifty Total Market Index Fund

Angel One AMC has launched two new mutual funds that consider Nifty Total Market TRI as the benchmark.

  • Angel One Nifty Total Market ETF
  • Angel One Nifty Total Market Index Fund

These funds from Angel One AMC provide exposure to 93% of the total market capitalisation through a single investment. The new fund offer (NFO) was open from February 10 to February 21, 2025, offering investors an opportunity to invest in a diversified index.

Conclusion

A Nifty Total Market Index Fund can provide a well-balanced investment strategy by covering all market cap segments. It can offer diversification, growth potential, reduced risk and more, making it a choice for long-term investors.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.