Foreign investors have a dual attitude towards the Indian stock market, they are investing a lot of money in the primary market, but they are staying away from the secondary market.

Admin — Tue, 21 Oct 2025 03:40:28 +0000

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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Foreign investors are investing money in Indian stock market openly, Rs 17,425 crore in a week

Admin — Sun, 27 Apr 2025 08:55:26 +0000

Share Market: Foreign investors have increased interest in the Indian stock market and they are investing money openly in the equity markets of the country. Last week, foreign investors invested Rs 17,425 crore in the stock markets. According to the report of the news agency PTI, before this, a net investment of Rs 8,500 crore was made in the week ended on 18 April. & Nbsp;

Why investors confidence in the market?

Globally, the stable performance of major markets, the hope of stopping the US Federal Reserve’s interest rates, and the stable US dollar has increased the ability to take risks for emerging markets like India.

According to the Associate Director of Morningstar Investment – Manager Research Himanshu Srivastava, the lack of tension in global trade with all these has also improved the perception of investors. & Nbsp; On the domestic front, on the domestic front, the strong growth outlook of India, softening in inflation and 2025 in 2025 have led to the growth of investors in the market. Due to this, it has now become an attractive destination of investment for foreign investors.

Withdrawal of so much crore rupees so far & nbsp;

However, the picture of the overall investment remains mixed. According to depository data, in April, FPI has withdrawn Rs 5,678 crore from equity, causing total withdrawal to Rs 1.22 lakh crore for 2025. & Nbsp; Earlier, foreign investors had sold heavy shares as the American tariff policy created an atmosphere of global uncertainty."Text-Align: justify;"> Hence the interest of foreign investors increased

Chief Investment Strategist V.K. Vijaykumar said that there may be two main reasons for fresh interest of foreign investors in Indian stock markets. The first is the decline in the US dollar and the second reason is the estimate of a heavy decline in US growth, which will affect corporate income. The dollar index has now fallen from 111 peaks to around 99 in mid -January 2025. At the same time, India’s economy may remain flexible with an estimate of more than 6 percent growth and corporate income is also estimated to improve. & Nbsp;