Indian stock market: Foreign portfolio investors (FPIs) sell relentlessly in the Indian stock market. In 2025, FPIs remained net sellers in the Indian stock market by selling out Indian shares worth approximately £ 2,27,500 in the cash segment. However, they bet high in the primary market. According to the NSDL data, collective investment of foreign funds in the Indian anchor books of the initial public offers (IPOs) rose threefold in FY25 to around £ 26,500 crore, threefold compared to the previous financial year. According to stock market experts, this double behavior of FPIs can be attributed to different reasons, but an important factor among them is the too expensive Indian secondary market compared to the Indian primary market. They said FPIs are not in the mood to accept market -driven shares as they want a prioritized agreement where they can affect conditions, timing and structure, rather than accepting market -determined prices in secondary transactions. Anuj Gupta, director of YA Wealth, said: “The Indian stock market looks too expensive compared to other emerging markets, compared to the MSCI index index, which has a multiple of 25.4, compared to the MSCI emerging market index, which includes India, with a P/e P/e plural 14.6, while the MSCI Korea index is 12.4x. In such a scenario, IPOs offer a better game for the Indian markets, as management and bankers provide the issue attractive, and deliver significant interest in investors, “Anuj Gupta added. On what FPI’s confidence in the Indian primary market attracts before the direct stock, Avinash Gorakshkar, a sebi registered fundamental analyst, said:” Domestic institutional investors have deepened the stock markets and improved the liquidity, which gave FIIs the confidence to come to IPOs without worrying. “IPO offering prioritized agreement?” By investing in IPOs instead of stocks, prioritizing FPIs transactions that can affect conditions, timing and structure, rather than to accept market -oriented prices in secondary transactions. The preference for anchor positions in IPOs offers investors with security management, a favorable prices in selling the prices, “Said Avinash Gorakshkar, which has sold,” secondary market can be expected when the primary market removes and the flow of IPOs dries. ‘Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or brokerage firms, not coin. We advise investors to consult with certified experts before making investment decisions, as market conditions can change quickly and conditions can vary.
Why do FPIs sell stocks and buy IPOs in the Indian stock market? Explain
