By Admin 
Share Market News: After continuous selling, foreign portfolio investors (FPIs) are turning to the primary market of the country. However, they are continuously maintaining distance from the secondary market or stock exchange. Foreign investors are registering their strong presence in the IPO market.
Between January 1 and October 17, 2025, foreign investors made a huge investment of Rs 54,178 crore ($6.23 billion) in the country’s primary market. There is enthusiasm about new listings, but the environment in the secondary market has been completely opposite. During this period, foreign investors sold shares worth Rs 2.02 lakh crore ($23.13 billion).
Looking at this trend, it can be said that the sentiment of foreign investors remains positive regarding Indian shares. Due to this, there has been a rise in the stock market in the last few days. Overall, foreign investors are adopting a two-pronged approach, on one hand they are investing heavily in IPOs and FPOs and on the other hand they are staying away from the secondary market.
Why are foreign investors adopting dual strategy?
VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said, “The valuation in the primary market remains much cheaper than the secondary market, due to which FPIs are investing in IPOs. This trade has been seen for the last few years.”
Vijayakumar said that in the primary market, foreign investors get preferential allotment under Qualified Institutional Buyers (QIB). They have a guaranteed investment. He also said that due to the Indian stock market being expensive compared to other countries, foreign investors are turning to cheaper markets, but their faith in the primary market remains intact.
Foreign investors stake heavily in primary market
In 2024, FPIs bought shares worth Rs 1.22 lakh crore from the primary market, while they sold shares worth Rs 1.21 lakh crore in the secondary market. Data from PrimeDatabase.com shows that so far this year, 81 companies have raised Rs 1.21 lakh crore by issuing their shares to investors for the first time, while in the whole of 2024, 91 companies had raised Rs 1.6 lakh crore.
This month alone, seven companies raised Rs 35,646 crore through IPO. Some of the big IPOs include Tata Capital Limited (Rs 15,512 crore) and LG Electronics India Limited (Rs 11,607 crore).
Interest of foreign investors in new sectors
According to an Indian Express report, Vipul Bhowar, Senior Director, Head of Equities, Waterfield Advisors, said, “FPIs often want to invest in new sectors and themes which have strong growth potential. Due to this, many FPIs are balancing their portfolio by selling or reducing their stake in old themes and increasing their investments in new themes emerging in the primary market. The trend of FPIs selling in the secondary market and participating in the primary market is increasing.
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