IPO frenzy attracts FPIs, even as stock selling hits ₹25,682 crore in September: Will trend continue? Experts weigh in
AI Summary
The current trend of FPIs favoring IPO investments over secondary market equities suggests a cautious sentiment towards broader Indian markets, driven by factors like relative valuations and macroeconomic conditions. For retail investors, this divergence may indicate a strategic shift towards mid- and small-cap stocks, which could present opportunities for growth as FPIs selectively target these segments. As the IPO market serves as an exit strategy for private equity, investors should remain vigilant about the underlying fundamentals of companies going public, as this could impact long-term investment viability.
With around 34 IPOs hitting the primary market in September and a couple more expected, foreign portfolio investors (FPIs) continued to deploy capital through the primary market. According to NSDL data, FPIs invested ₹8,551 crore in IPOs through 25 September.
At the same time, FPIs continued to sell equities through stock exchanges. This divergence has taken their total equity selling through exchanges in 2026 to ₹2,95,971 crore, while investments through the primary market during the same period stood at ₹54,398 crore, according to NSDL data.
Original Article
Published on Livemint
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This is a market news update from Livemint, published on 28 September 2026.
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