India may rise FY25 capex by 8-10%
Will increase from Rs11.11L cr allocated earlier, owing to higher-than-expected tax revenue and a record surplus transfer by the RBI
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Mumbai: India may increase its FY25 capex by 8-10 per cent from the Rs 11.11 lakh crore allocated earlier, owing to higher-than-expected tax revenue and a record surplus transfer by the Reserve Bank of India (RBI), a report showed on Tuesday.
The election outcome in June fuelled ongoing optimism for policies and reforms, supporting a medium to long-term positive outlook for Indian equities, according to the report by homegrown financial conglomerate Pantomath Group.
The country’s stock market capitalisation also surpassed $5 trillion for the first time in the second quarter (Q2) this year in the month of May, making it the fifth country after the US, China, Japan, and Hong Kong to achieve this feat.
Mahavir Lunawat, Managing Director, Pantomath Capital Advisors, said: “Favourable market conditions, high liquidity, a conducive growth environment with stable interest rates, and benign inflation have facilitated a boom in the IPO market.”
The IPO market will experience a stronger pull post-budget and India is set to become the new equity funding frontier for global corporations, he added. India’s primary market anticipates a bustling period ahead, with 55 companies planning to raise over Rs 68,000 crore via IPOs.
Around 35 IPOs in the first half of 2025 raised around Rs 32,000 crore, with an average subscription rate of 61 times. Sector-wise, the real estate market is set for robust growth, driven by government policies and urbanisation, requiring Rs 14 lakh crore ($170 billion) in debt financing from 2024 to 2026.
