India’s equity capital markets (ECM) activity could touch $70 billion in 2026, supported by improving valuations, strong macroeconomic growth and policy stability, according to V Jayasankar, Managing Director, Kotak Investment Banking.
Jayasankar said the valuation correction seen last year has created a healthier base for capital-raising activity, making markets more attractive for issuers and investors alike. Combined with India’s consistent economic growth and a stable policy environment, this has set the stage for a robust revival in ECM deals.
He noted that IPO pipelines are strengthening, with companies across sectors preparing to tap the markets as investor confidence improves. In addition to IPOs, QIPs, rights issues and block deals are also expected to contribute meaningfully to overall ECM volumes.
According to Jayasankar, domestic liquidity remains strong and global investors continue to view India as a long-term structural growth story, which should help sustain deal momentum through 2026. He added that well-priced issues and quality businesses are likely to see healthy demand, even amid global uncertainties.
Overall, the combination of better valuations, economic resilience and policy continuity is expected to drive a sharp pickup in India’s equity capital market activity in 2026.
