Neutral impactEconomy
IPO frenzy attracts FPIs, even as stock selling hits ₹25,682 crore in September: Will trend continue? Experts weigh in
Mint 2 hrs ago·28 Sept 2026, 11:08 am
Foreign Portfolio Investors (FPIs) have been selling Indian equities aggressively, with total outflows reaching ₹2.41 lakh crore in 2026. This selling pressure was particularly visible in large-cap stocks. However, a notable shift in strategy is emerging, as FPIs are increasingly directing their capital toward mid-cap and small-cap companies, as well as new Initial Public Offerings (IPOs). This indicates a move towards smaller, potentially higher-growth segments of the market.
For investors, this trend highlights a selective approach by global investors. While the broad market faces selling pressure, specific sectors and smaller companies are attracting fresh capital. This divergence suggests that not all segments of the market are facing the same headwinds.
Going forward, investors should monitor the pace of these outflows and the sectors receiving the new inflows. If the preference for mid-caps and IPOs continues, it could signal a rotation of funds within the Indian market, offering opportunities in segments that are currently seeing increased foreign interest.
Excerpt from Mint
FPI outflows totaled ₹ 2,41,572 crore in 2026, with distinct trends in stock preference. While FPIs sold large-cap stocks, they increasingly invested in mid- and small-cap stocks and IPOs, revealing a selective investment strategy amidst broader market pressures. With around 34 IPOs hitting the primary market in…Read the original at Mint
Key takeaways
- Category: Economy.
- Assessed as a significant, market-relevant update.
Why it matters
A meaningful update worth tracking. Use the price and stock snapshot to gauge how the market is responding.
