IPO Wave Sweeps India as Sensex and Nifty Hold Steady: Investors Shift Focus to Fresh Issues

Mumbai | October 6 – The Indian equity market traded higher on Monday afternoon, lifted by sustained buying in banking, IT and healthcare counters. Around 12:50 PM, the S&P BSE Sensex advanced 428 points (0.53%) to 81,635, while the NSE Nifty 50 climbed 128 points (0.51%) to 25,022, reflecting broad-based gains across key sectors.

India’s stock market began the week on a firm footing, but the real momentum was visible elsewhere — in the country’s booming primary market.
Even as benchmark indices moved within a narrow band, a wave of new listings continued to dominate investor attention. With over 70 mainboard IPOs and nearly 200 SME issues this year, the IPO surge highlights a shift in investor strategy — reducing exposure to fully valued blue-chips and chasing growth in newly listed firms.

Despite steady macroeconomic indicators, indices have largely stayed range-bound through the year. Persistent foreign outflows, geopolitical uncertainty, and a weaker rupee have kept the upside capped even as fundamentals remain stable.

Buzzing: Lenskart IPO Approved: Inside Peyush Bansal’s ₹2,150-Crore Public Issue Backed by SoftBank and Temasek

According to NSDL data, Foreign Portfolio Investors (FPIs) have sold equities worth ₹2.03 lakh crore in the secondary market since September 2024, while investing nearly ₹44,600 crore in IPOs and fresh issues. This reflects a clear capital rotation towards new-age companies with cleaner balance sheets and stronger earnings visibility.

Recent IPOs such as Tata Capital and WeWork India have seen robust demand, while upcoming issues from LG Electronics India, Rubicon Research, and Canara Robeco AMC are expected to sustain the momentum through October.

Sector Moves: Healthcare and Financials Lead Gains

Monday’s trade saw sectoral strength in healthcare and financials.
Max Healthcare surged almost 6% after the Union Health Ministry approved a long-awaited revision of CGHS rates for over 2,000 procedures — the first update in more than a decade — a move expected to improve realisations for empanelled hospitals.

Among lenders, Bajaj Finance rose 2.4% after reporting a 24% year-on-year growth in assets under management to ₹4.62 lakh crore in Q2 FY26. Poonawalla Fincorp gained 2%, posting a 67% jump in AUM to ₹47,625 crore, driven by retail loan growth and prudent risk management.

Nykaa rallied 5% following a strong quarterly update, while Bharti Airtel inched higher after its enterprise arm secured a multi-year cybersecurity contract from Indian Railways.
On the flip side, Tata Steel, Adani Ports, and Power Grid slipped on profit-taking, while Vodafone Idea declined over 4% after the Supreme Court deferred the hearing on AGR dues to October 13.

IPO Rush Shapes Market Sentiment

The resurgence of IPOs remains the defining feature of 2025. Ample liquidity, sustained retail participation, and regulatory stability are fuelling strong primary market activity. Investors continue to favour companies with scalable business models and transparent financials over high-valuation incumbents.

Institutional interest also remains firm, underscoring confidence in India’s long-term growth story, particularly across financials, manufacturing, and consumer-driven sectors. Government initiatives — from infrastructure spending to healthcare and manufacturing incentives — have further reinforced investor conviction.

The Road Ahead

The divergence between a vibrant primary market and a cautious secondary market reflects a structural shift in Indian equities. Investors are reallocating capital selectively — maintaining defensive exposure while pursuing opportunities in quality new listings.

With more than 25 IPOs lined up for the festive quarter, the primary market is set to remain active, even as benchmark indices consolidate. For the near term, market direction will hinge on foreign flows, global yields, and corporate earnings.

India’s equity outlook remains constructive — built on confidence, innovation, and a deepening investor base. The secondary market may be steady, but the primary wave is clearly steering sentiment forward.

Also  Read: Tata Capital IPO Day 1 Subscription: Issue Subscribed 14% So Far; Check Price Band, Lot Size, Dates and Key Details