As of September 2026, FPIs have invested ₹55,524 crore in the primary market, compared to massive net selling of ₹3.15 lakh crore in the secondary market. This year, the total net outflow from both markets stands at ₹2,60,303 crore.
In the past 2 years, FPIs have invested ₹73,910 crore in FY25 and ₹1,21,637 crore in FY24 in the primary market. During the same period, they sold ₹2,40,193 crore and ₹1,21,210 crore in the secondary market. In both these years, FPI had a net outflow of ₹1,66,284 crore and ₹427 crore.
It is generally assumed that weak market sentiment in the secondary market directly impacts the performance of the primary market. But after looking at the FPIs’ investment in the primary market for over 3 consecutive years, the assumption doesn’t seem to be true.
FPI Investment Flow
| Year | IPOs (in crores) | Secondary market | Net outflow/inflow |
| 2024 | 1,21,637 | -1,21,210 | 427 |
| 2025 | 73,910 | -2,40,193 | -1,66,284 |
| 2026 (till September) | 55,524 | -3,15,827 | -2,60,303 |
Why are foreign investors interested in the IPO market?
When it comes to the secondary market, FPIs can only buy stocks of already listed shares. But in the primary market, they can invest in companies before they get listed on the stock exchange, allowing them to invest in a company pretty early on.
Another reason for them approaching the primary market is to invest in newer technology-driven businesses, new-gen startups, and companies operating in the manufacturing sector in which they see massive growth opportunities.
Moreover, already listed companies in the secondary market may give slower growth compared to new companies entering the primary market.
Investing in the secondary market requires patience and time to achieve expected returns. On the other hand, the primary market is great for quick listing gains.
Lastly, FPIs can only buy shares in the primary market. They can only sell in the primary market if they have bought shares of the companies as (private equity or venture capital) before the companies launch their IPOs.
