The BSE’s benchmark Sensex closed 16% lower at 70,200 points, its first dip below the 79,300 intraday high since March 2024.
In September, FPIs sold ₹45,537 crore of listed equity while channeling ₹9,676 crore into IPOs, a 21% year‑on‑year rise in primary‑market inflow, according to the BSE filing.
Retail investors divested ₹5,674 crore from the market during July–August but added ₹12,618 crore in IPOs, up from ₹1,307 crore the preceding quarter, per the Securities and Exchange Board of India.
Market research firm Motilal Oswal’s VP Sneha Poddar said the reallocation reflects valuation fatigue in large caps and a search for higher growth through IPOs.
With US yields tightening and the rupee weakening, analysts predict continued primary‑market enthusiasm as FPIs look for currency‑hedged exposure, while the secondary market may see further profit‑taking ahead of the next earnings cycle.
Recent listings yielded an average premium of 13% over pricing, topping the 8% average of the past year, signalling strong demand for new equity.