Domestic investment banks have captured seven of the top ten positions in equity league tables as of September 2026, marking their strongest performance in eight years. This shift is driven by heavy local institutional buying despite significant foreign investor selling. With large IPOs like Jio Platforms ahead, the ability of these local banks to navigate market volatility and rising interest rates will be a key factor to watch.
Domestic investment banks have firmly established themselves at the center of India's equity capital markets. As of September 2026, local firms now hold seven of the top ten spots in the country's dealmaking league tables, a level of dominance not seen in eight years. Kotak Mahindra Capital Co. has regained the top position, managing 45 transactions and securing a 9.5% market share.
This trend highlights a major change in how Indian markets are funded. While foreign institutional investors have moved away from the Indian market—divesting more than $30 billion in shares so far in 2026—domestic institutions have stepped in to fill the gap. These local investors have deployed approximately $68 billion, providing the necessary liquidity to support company share sales. This strong support from home-grown investors allows local banks to leverage their deeper relationships with domestic companies, particularly in the state-owned sector, which has seen a high volume of issuances this year.
The competitive landscape for investment banking has changed significantly. Previously, international firms dominated the scene, but they now face a more challenging environment. JPMorgan Chase & Co., which led the rankings last year, has slipped to 12th place. Meanwhile, domestic players such as IIFL Capital Services Ltd. and ICICI Securities Ltd. have strengthened their positions, capturing the third and fourth spots with 37 and 43 deals respectively. Jefferies Group and Citigroup remain as the only foreign entities currently within the top ten, holding the fifth and sixth ranks.
However, the path ahead for these banks is not without challenges. The Nifty 50 index has declined by approximately 13% so far this year, which adds pressure to the pricing of new share sales. Market participants are also keeping a close watch on the macroeconomic environment. Rising global bond yields, with the US 10-year Treasury yield at 5.31%, continue to strain foreign investor sentiment. Furthermore, the Reserve Bank of India is expected to announce a 25 basis point repo rate hike on October 7, 2026. Such a move could increase borrowing costs, potentially creating headwinds for rate-sensitive sectors like real estate, automobiles, and non-banking finance companies.
The upcoming months will test the leadership status of these local banks as they manage a robust pipeline of share sales. Major offerings, including an anticipated $3.1 billion share sale by Jio Platforms Ltd., as well as upcoming deals from Avaada Electro Ltd. and Advanta Enterprises Ltd., are lined up. Investors will track whether these banks can successfully navigate the current market volatility and higher interest rate environment to ensure these deals are priced and executed effectively.