Foreign portfolio investors (FPIs) have put ₹55,524 crore into Indian IPOs this year. They sold a record ₹3.15 trillion of listed stocks through September, Prime Database data shows. This is the third year in a row.
FPIs Split Their Bets Again in 2026
For the third year running, foreign portfolio investors have sold listed Indian shares while buying into new issues. FPIs are overseas funds that invest in a country’s stocks and bonds. The listed market is called the secondary market. The IPO market is called the primary market.
Prime Database numbers, as reported by Business Standard, show the gap:
- 2024: FPIs sold ₹1.21 trillion of listed stocks and bought ₹1.22 trillion in IPOs. Total FPI flows for the year ended slightly positive, at ₹427 crore.
- 2025: FPIs sold ₹2.40 trillion of listed stocks and bought ₹73,910 crore in IPOs.
- 2026, through September: FPIs sold a record ₹3.15 trillion and bought ₹55,524 crore in IPOs.
Other trackers show slightly different 2026 totals, because they use different cut-off dates and definitions. One tally based on depository data put IPO buying near ₹54,398 crore and listed-stock selling near ₹2.96 lakh crore. Treat all 2026 figures as running totals that change with each data update.
What is the Difference Between the Primary and Secondary Market?
In the primary market, a company sells new shares to investors for the first time. That is what happens in an IPO. In the secondary market, investors trade shares that are already listed on an exchange such as the NSE or BSE. The money from primary sales goes to the company or the selling shareholders.
Selling in Listed Stocks Has Not Slowed
Depository data, reported by PTI, show the selling continued into October. Foreign investors pulled ₹44,166 crore from Indian equities in the first part of the month. That took net outflows for 2026 past ₹3 lakh crore, to ₹3.04 lakh crore. All of 2025 saw ₹1.66 lakh crore of net outflows.
September saw a net withdrawal of ₹35,861 crore. Before that, FPIs had put in ₹20,200 crore in July and ₹29,631 crore in August. The report linked the October selling to high crude oil prices, a firmer US dollar and higher US bond yields. It also said an AI-led rally in North Asian markets was drawing foreign money away.
By September 4, net equity outflows had reached ₹2.32 lakh crore. That was already above the ₹1.66 lakh crore for all of 2025. The Free Press Journal reported the depository data.
The biggest single month so far was March 2026. FPIs sold equities worth ₹1,17,775 crore that month, according to depository data reported by Outlook Money. It was their largest monthly exit up to that point.
Why Can FPIs Only Buy in an IPO?
In an IPO, FPIs can only buy. Apurva Sheth of SAMCO Securities told Business Standard that they can sell only if they hold a stake through a pre-IPO, private equity or venture capital deal. In his words, FPIs rarely become sellers there. At worst, they stop buying.
FPIs have been net buyers in the primary market in every calendar year since December 2009, except 2011, he said. That was when the National Securities Depository Limited (NSDL) began reporting the split.
People often assume that moves in listed stocks rub off on IPOs. The data do not show that. Business Standard said the two markets do not move in tandem.
What Analysts Say About the Split
Sheth also pointed to access. Many fintech and new-age manufacturing businesses are not available in the secondary market. So FPIs are moving money out of slower-growth listed firms and into high-growth names that come to market.
Devarsh Vakil of HDFC Securities said FPIs join an IPO when they see a specific company, price or share allotment they like. He said that does not always signal a broad bullish view on Indian equities.
Prasenjit Paul of 129 Wealth Fund said much IPO buying is tactical. Investors look for quick gains on listing day. Buying in the secondary market usually has a longer holding period.
How Busy the IPO Market Is
September was a busy month for new issues. More than 34 companies raised about ₹39,380 crore. That was 42 per cent of all the money raised in the 2026-27 financial year. By the end of September, 78 companies had raised about ₹94,276 crore in that year.
The National Stock Exchange (NSE) also listed in September. Business Standard called it the largest IPO of this financial year. That listing helped lift the monthly total.
What Do FPI Outflows Mean for Indian Markets?
Outflows show that foreign investors are taking money out of listed shares. These figures alone cannot show how markets will move next. They do list the reasons given for the selling: crude oil, the dollar and US yields.
The IPO data adds a second view. Foreign investors have not left India entirely. Their buying has moved toward new issues.
Also Read: SEBI Wants Every IPO Tracked: How Would Companies Prove They Used the Money Right?
Why Pricing Matters for the IPO Cycle
One analyst quoted by Business Standard said record IPO numbers in 2026 show the market can absorb new supply. He added that pricing must stay rational. Vakil said pricing will matter too. In his view, issues priced for perfection in a risk-off market could turn the IPO cycle colder. Issues priced realistically might restore confidence in the primary market. So pricing and liquidity are the two factors the analysts stress.
Another analyst, Prathamesh Kadival of Bonanza, said giant issues soak up money that smaller IPOs depend on. He added that strong domestic inflows could help the market absorb the load. Business Standard reported that, according to multiple reports, the Reliance Jio IPO could open as soon as the end of October. That timing is not confirmed.
