Retail investors shift from secondary market to IPOs in July-August, selling Rs 5,674 crore
Indian retail investors sold equities in July and August. They then invested heavily in primary market IPOs during this period. This shift occurred after significant buying in the previous quarter. Analysts suggest this is a tactical allocation change for profit booking. Strong IPO activity and listing gains are attracting this capital.
In July and August, India's retail investors moved from buying secondary market stocks to investing in IPOs, selling a combined ₹5,674 crore in the secondary market after buying ₹42,774 crore in the June quarter, according to NSE data. Meanwhile, they invested over ₹12,618 crore in the primary market during the two months, compared to ₹1,307 crore in the June quarter.
Analysts suggest that the surge in mid-cap and small-cap stocks since early April may have prompted some investors to sell some gains and invest in fresh issuances. Saurabh Jain, Head of Fundamental Research at SMC Global Securities, notes that this represents a tactical shift in allocation, as investors may be booking profits and becoming more selective amid elevated valuations and market volatility, while also benefiting from a strong IPO pipeline.
So far this fiscal year, retail investors have invested a total of ₹50,995 crore across the secondary and primary markets.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
