FPIs keep India's IPO heart beating: ₹54K cr pumps life into market pulse

Foreign investors act as lifeblood of primary markets, steadying flows amid heavy outflows

Foreign portfolio investors (FPIs) have delivered over ₹54,000 crore into India’s primary markets so far in 2025, mainly through initial public offerings (IPOs). Without this vital infusion, net foreign outflows from equity this year could have approached ₹2 trillion. 

In October alone, FPIs committed ₹10,096 crore to primary issuances, driven by major IPOs such as LG Electronics India and Tata Capital. This marks their second-highest monthly investment this year, trailing only July. 

FPI activity has been uneven, with inflows recorded in just five of the first 10 months. October’s uptick follows three consecutive months of heavy selling. While net investments remain modest, they helped trigger the strongest monthly equity rally since March, lifting benchmarks Sensex and Nifty by nearly 5 per cent so far this month. In March, both had climbed more than 6 per cent after five straight months of declines. 

Without a sustained return of foreign capital, Indian equities are likely to lag behind global markets in 2025.