Stock market is crashing, yet IPOs attract billions: What’s happening here?
Despite a significant downturn in the Indian stock market, foreign and retail investors are showing strong interest in Initial Public Offerings. Data indicates a clear shift in capital allocation from listed equities to the primary market.
Why it matters
This divergence highlights shifting investor confidence and the resilience of new market offerings despite broader economic volatility.
There seems to be no end in sight for the stock market crash. Investors, especially foreign, are exiting Indian equities with record outflows continuing. Sensex is down almost 16% from its lifetime intraday high, and hasn’t hit a fresh closing high in over two years now!Yet a striking divergence is emerging, and one that points to a more complex picture of India’s stock market prospects and fundamentals.Even as Sensex continues to bleed, Dalal Street’s IPOs (Initial Public Offerings) are seeing strong investor interest.
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