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Retail investors pull Rs 5,674 crore from stocks, invest Rs 12,618 crore into IPOs

By Sohail Khan 17 September 2026, 5:51 am

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Business News›Markets›Stocks›News›Retail investors pull Rs 5,674 crore from stocks, invest Rs 12,618 crore into IPOs in July-August

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Retail investors pull Rs 5,674 crore from stocks, invest Rs 12,618 crore into IPOs in July-August
Synopsis

Indian retail investors sold equities in July and August. They then invested heavily in primary market IPOs during this period. This shift occurred after significant buying in the previous quarter. Analysts suggest this is a tactical allocation change for profit booking. Strong IPO activity and listing gains are attracting this capital.

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Retail investors shift from secondary market to IPOs in July-August, selling Rs 5,674 crore<br><br> — So far in FY27, retail investors have bought nearly ₹37,070 crore in the secondary market and ₹13,925 crore in the primary market.

Mumbai: After heavy buying in the June quarter, India's retail investors turned sellers in the secondary market in July and August while stepping up investments in IPOs as primary-market activity accelerated. Retail investors sold a combined ₹5,674 crore in the secondary market in July and August after buying ₹42,774 crore in the June quarter, according to data compiled from NSE. In contrast, they invested more than ₹12,618 crore in the primary market during the two months, compared with ₹1,307 crore in the June quarter.

Analysts said the run-up in mid-cap and small-cap stocks since the rebound in early April could have prompted some investors to lock in gains and move money to fresh issuances. "Investors are rotating liquidity from existing stocks towards primary issues," said Saurabh Jain, Head of Fundamental Research, SMC Global Securities. "It appears more like a tactical shift in allocation. Some investors may be booking profits and becoming selective amid elevated valuations and market volatility. At the same time, the strong IPO pipeline is providing fresh opportunities, including potential listing gains and new growth stories."

ET Bureau

So far in FY27, retail investors have bought nearly ₹37,070 crore in the secondary market and ₹13,925 crore in the primary market, taking their cumulative investments across the two markets to ₹50,995 crore in the first 5 months of the financial year.

Read more: NSE IPO: Every Rs 10 move in shares could swing Radhakishan Damani’s wealth by nearly Rs 40 crore

In FY26, retail investors sold nearly ₹5,803 crore in the secondary market while investing ₹42,608 crore in the primary market. Gains from India's main indices in July and August were moderate, while the broader markets continued to strengthen. The Sensex and Nifty gained 0.1% and 0.3%, respectively, over the two months, while the BSE MidCap 150 and BSE SmallCap 250 indices rose 3.5% and 2.6%. The shift towards primary issues coincided with a sharp pick-up in IPO activity. Twelve IPOs raised ₹28,648 crore in July, while 23 issues raised ₹23,453 crore in August. Average listing-day gains rose to nearly 14% in July and 29% in August, compared with 1.44% between January and June.

Read more: Rupee languishes at six-week low ahead of Fed outcome, RBI limits losses

Puneet Singhania, director, Master Capital Services, said the shift reflects profit booking, selective buying and reallocation of liquidity rather than an exit from equities. "Investors have become more selective about valuations in the secondary market. Importantly, retail participation in mainboard IPOs has increased to 29% in FY27 from 23% in FY26, showing that retail investors continue to deploy capital into equities. Strong SIP inflows, which reached a record ₹32,297 crore in August, further reinforce this trend," he said. The selling in the secondary market is therefore more of a tactical shift than a structural withdrawal, Singhania said.

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