IPO frenzy continues: FPIs pump in ₹7,833 crore in November offers even as they exit secondary markets

The investing trends of the foreign portfolio investors (FPIs) paint a contrasting picture on Dalal Street. At a time when FPIs have remained big sellers of the Indian stock market in 2025, they, too, have not been able to ignore the lure of the primary market.

In November so far, FPI sales stand at ₹13,925 crore, taking the total year-to-date selloff to ₹208,126 crore. However, the current trend of FPIs investing in the primary market remains robust, with investments reaching ₹7,833 crore so far this month and ₹62,125 crore in 2025.

The trend indicates a clear shift towards primary markets. With an anecdote, Mohit Gulati, CIO and managing partner of ITI Growth Opportunities Fund Foreign, explained that funds right now are behaving like diners at a buffet who’ve decided the main course is a bit too heavy, so they’re skipping the old dishes and lining up for the freshly served starters instead.

“That’s why you’re seeing them trim secondary-market exposure while happily piling into primary issuances. Unless global liquidity loosens or we get a big India-specific catalyst, this pattern should continue: a little pressure in the secondary market, balanced by strong appetite for new paper,” said Gulati.

IPO market in November

In November 2025, the IPO market has been particularly vibrant and varied, featuring several notable listings across industries like fintech, clean energy, edtech, and industrial manufacturing.

So far, November has seen seven mainboard IPOs, with five successful listings. Major IPOs introduced in November 2025 include Pine Labs, Groww, Capillary Technologies, and Fujiyama Power Systems, among others.

FPI selling patterns

Looking from the secondary market perspective, analysts suggest that India's relative underperformance compared to other markets has intensified the trend of selling in India while investors are buying into other markets, which are seen as the main beneficiaries of the current AI-driven market.

“The FII selling in India, for most of this year, has been driven by a combination of factors like higher valuations in India, tepid earnings growth and the booming AI trade in other markets like the US, China, South Korea and Taiwan. FIIs, particularly hedge funds, have been selling in India and moving money to cheaper markets, particularly to AI stocks,” said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments.

Examining historical trends, Elara Capital pointed out that foreign institutional investors have developed a negative outlook on Indian equity markets since August 2024, coinciding with the strengthening likelihood of Trump's re-election as President of the United States.

From FY25, FPI equity inflows have recorded negative numbers on a net basis in 10 out of 19 months.

Several factors have influenced the interest in FPI flows into India, including relative valuations, escalating geopolitical uncertainties, increased tariffs, lacklustre earnings, and the absence of an attractive AP play, according to Elara Capital. However, the brokerage's analysis indicates that the primary factor affecting FPI interest in India’s equity markets is nominal growth.

What will be the FPI trend going ahead?

Vijayakumar highlighted that the FII buying/investment through the primary market has been a consistent trend and will continue.

From a secondary market perspective, Vijayakumar believes a reversal of the FII selling will happen when the AI trade loses steam and earnings in India improve. This is a likely trend in Q3 FY26.

What's next for Nifty 50?

The secondary market has experienced significant volatility due to macroeconomic and political events, along with various domestic factors. In November, the Nifty 50 has increased by 0.7% so far and is currently close to its all-time high levels. The index climbed from approximately 25,500 at the beginning of the month to about 26,000 by mid-November.

Gulati said that for the Nifty 50 to break into fresh-high territory, we’ll need a headline moment — think an India-US trade breakthrough, a clean Fed pivot, or earnings that make analysts blush.

“If that plays out, 26,300–26,500 is on the table. If not, we’re more likely to drift in the 25,500–26,000 zone for now,” added Gulati.

Similarly, Kunal Kamble, Sr. Technical Research Analyst at Bonanza, explained that based on the current market structure, fresh FII participation is likely to emerge near 26,100, with more aggressive accumulation expected around 26,300. “Accordingly, the near-term Nifty 50 target stands at 26,250–26,500.”

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.