Street Signs: Outpaced on the global racetrack, 'Growwing' against the tide

Outpaced on the global racetrack  The MSCI Emerging Markets (EM) Index has posted positive returns in all eight calendar months of 2025, climbing 17 per cent year-to-date (YTD) as global sentiment favoured non-US assets. In contrast, Indian equity markets — which hold the third-largest weight in the EM gauge — fell for a second consecutive month in August and have advanced in only four of the eight months so far. YTD, the benchmark Nifty 50 is up less than 3 per cent, falling well behind the broader EM index. This underperformance reflects, in part, foreign investors trimming exposure to Indian equities amid sluggish earnings growth that clashes with India’s premium market valuations. Economic uncertainty has been further amplified by steep US trade tariffs on Indian exports, dampening investor confidence. 

Groww navigates regulatory rapids 

Groww, India’s largest broker by active clients, has secured approval for its initial public offering (IPO) and plans a $1 billion share sale before the end of the year. Backed by Peak XV Partners and Tiger Global, the company now faces timing concerns. Shares of rival Angel One have fallen over 30 per cent from their peak amid worries about regulatory tightening in the futures and options segment — their largest revenue driver. Other capital market firms, including BSE, have also seen valuations derate. Investment bankers involved with Groww’s listing acknowledge that evolving regulations present real challenges as the company prepares for roadshows. While Groww aims for a $7 billion valuation and a $1 billion IPO, sources suggest both figures may need downward adjustment in light of the shifting regulatory environment. 

India’s trading highway gets new traffic 

As the Securities and Exchange Board of India continues curbing excessive speculation in the derivatives segment amid rising retail investor losses, two exchanges eyeing the equities market are gaining traction. Last week, the Metropolitan Stock Exchange of India completed its second capital raise of ₹1,000 crore. Similarly, the National Commodity & Derivatives Exchange, pursuing a ₹750 crore fundraise, has drawn strong investor interest. Both exchanges have secured prominent backers such as Citadel Securities, Tower Research Capital, Acacia Partners, Peak XV Partners, and Trust Investment Advisors. Leading equity platforms Groww and Zerodha have also acquired stakes in both exchanges. Against this backdrop, one wonders what shifts in India’s equity trading landscape could unfold over the next two years.