Retail participation in India’s primary markets has surged to an all-time high in FY26, with individual investors investing a record ₹34,840 crore in IPOs and other new issues so far this fiscal year. The strong inflows underline sustained interest in fresh listings, even as volatility and muted returns weigh on the secondary markets.
Market data shows that the sharp rise in primary-market investments contrasts with net outflows from equities in the secondary market, where benchmark indices and broader stocks have delivered uneven performance. For many retail investors, IPOs continue to appear more attractive due to the potential for listing gains and structured price discovery.
The trend also reflects growing financial inclusion, wider access to IPO platforms, and heightened awareness among retail investors, particularly in SME issues and high-growth sectors. However, experts caution that while primary markets offer opportunities, investors should remain selective, as elevated valuations and mixed post-listing performance could pose risks.
Overall, the record inflows highlight a shift in retail strategy—from chasing market momentum to selectively backing new-age and growth-oriented companies—even as uncertainty persists in the broader equity landscape.
