Business · Markets · 1 hr ago
Foreign investors sell Indian stocks but keep buying IPOs
Foreign portfolio investors have sold listed Indian stocks while buying IPO shares for three years running.
In 2026 through September, they bought ₹55,524 crore in IPOs while selling a record ₹3.15 trillion in the secondary market, where already-listed shares are traded.
This pattern is partly structural: investors can buy shares in an IPO, but generally can sell them only if they already hold a stake before the offering.
Some investors are shifting toward high-growth companies that are not available among listed stocks.
Others take part in IPOs seeking short-term gains when shares begin trading, rather than making a broad bet on India’s stock market.
Reliance Jio’s large IPO is expected to enter the market soon, with some reports saying it could open as early as October-end.
Whether IPO demand lasts will depend on pricing, while large offerings could draw money away from smaller companies; strong domestic investment may help the market absorb them.
Foreign portfolio investors have sold Indian listed stocks while continuing to buy shares in initial public offerings for three consecutive years.
In 2026, they invested ₹55,524 crore in the primary market and sold a record ₹3.15 trillion in the secondary market through September.
The same pattern appeared in 2025 and 2024, though the two markets’ flows differed in scale.
Analysts cited access to high-growth companies, IPO allocation opportunities and the prospect of quick listing gains as reasons for the trend.
They said future IPO pricing will influence whether foreign investors continue buying.
- Who
- Foreign portfolio investors, also called FPIs.
- What
- They have sold Indian stocks in the secondary market while buying shares in IPOs.
- When
- The pattern has continued for three years, including 2026 through September.
- Where
- India's primary and secondary stock markets.
- Why
- Analysts cited IPO access, company-specific opportunities and potential listing gains. They said FPIs can buy in the primary market but generally cannot sell there unless they hold shares through earlier investments.
This story does not have two clearly opposing sides.
FPIs sold ₹1.21 trillion in the secondary market and bought ₹1.22 trillion in IPOs.
FPIs sold ₹2.40 trillion in Indian stocks and bought ₹73,910 crore in IPOs.
FPIs invested ₹55,524 crore in the primary market and sold ₹3.15 trillion in the secondary market.
- Primary market investment in 2026
- ₹55,524 crore
- Secondary market sales in 2026 through September
- ₹3.15 trillion
- FPI stock sales in 2025
- ₹2.40 trillion
- FPI IPO purchases in 2025
- ₹73,910 crore
- FPI flows in 2024
- ₹427 crore net positive
What people are saying
At worst, FIIs stop buying; they rarely become sellers.
FIIs are participating where they see a specific company, valuation or allocation opportunity, not necessarily making a broad bullish call on Indian equities.
If future issues are priced for perfection into a risk-off market, the IPO cycle could turn sharply colder; if they are priced realistically, they may restore confidence in India’s primary market.
As long as IPOs are priced rationally, investors will continue to participate for short-term listing gains, and that demand itself encourages more companies to enter the market.