Foreign portfolio investors offloaded ₹23,676 crore of Indian equities in the secondary market through September 19. Meanwhile, primary market investments remained positive, showing a divergence in capital allocation. Technical analysts are watching the Nifty near 23,500 for resistance as IPO sentiment remains highly selective among retail and institutional participants.
The trend of foreign money flowing out of Indian stock markets has deepened in September. Data shows that foreign portfolio investors (FPIs) sold ₹23,676 crore worth of listed shares in the secondary market between September 1 and September 19. This marks a sharp reversal from the buying trend observed in the earlier months of July and August, indicating that foreign institutional investors are currently focused on profit booking or shifting their asset allocation.
While secondary market selling has been persistent, the primary market tells a different story. FPIs invested ₹2,703 crore into new share issues during the same period. This suggests that while there is hesitation toward buying existing listed stocks, foreign investors are still showing interest in specific new business opportunities coming through the IPO route. Despite this, the overall primary market activity is quieter compared to the previous financial year. Data from the Securities and Exchange Board of India indicates that FPI investments through the primary route for FY26 stand at ₹70,822 crore, down 41% from the ₹1.21 trillion recorded in FY25.
On the technical front, the Nifty 50 index is currently facing pressure after a string of weekly losses. Analysts suggest that the market is attempting to find a base. The 23,000 to 23,100 range is being monitored as a key support band, which could act as a floor if selling pressure continues. On the upside, the index faces resistance in the 23,500 to 23,800 zone. Traders are looking for sustained moves above recent highs to confirm any potential recovery, though current market momentum remains range-bound.
The IPO market is also reflecting a cautious and selective investor mindset rather than a broad-based rally. Recent and upcoming listings show a wide gap in valuation expectations. Some companies, such as SS Retail and Jindal Supreme, are commanding healthy premiums in the unofficial market, indicating strong demand for specific businesses. Conversely, other issues like Hero Motors are quoted at a discount, suggesting that investors are carefully evaluating individual company fundamentals and valuations rather than subscribing to every upcoming offer. This discernment is a key shift, as investors appear less willing to overlook high valuations even in the primary market.
Looking ahead, investors are tracking whether the FPI selling in the secondary market eases or continues into the final days of the month. The performance of the upcoming IPO calendar, which includes names like Varmora Granito, Elevate Campuses, ArMee Infotech, Swastika Infra, Adroit Industries, and A-One Steels, will provide further insight into the depth of investor appetite in the current economic environment.