- Foreign investors are unloading their holdings of expensive Indian stocks and turning instead to new listings in primary markets as they seek cheaper exposure to the market and better returns.
Foreigners have so far sold a net $3.42 billion worth of equities in the secondary market. They purchased a net $1.47 billion through primary market issuances so far this month, according to India's Central Depository Services Ltd.) report showed foreigners have bought more than $6 billion of stocks on the primary market this year, the highest since 2021.
India's NSE Nifty 50 index has risen 14% this year, and the 12-month price-to-earnings ratio for its large-and-mid cap stocks stands at 24 times, the highest among major global markets, according to LSEG data. "This lower valuation may also be seen as an opportunity for foreign investors who believe that these companies have potential for significant growth in the long run".