While staggering inflows from the FIIss fuelled a rally in the stock markets in March with high single-month gains in so many years. These investors also set the tone right even for primary markets which registered the best performance in three years time with collection of Rs. 2,550 crore from just two IPO issues of Metropolis Healthcare and Polycab India.
In contrast, there was no IPO issuance in April last year while in 2017 there was a single IPO issue of S. Chand & Co which raised Rs. 728 crore.
The heightened interest of FPIs which have been pouring fresh investments into the secondary market is attributed for the contribution made to the primary market. During the month of March, with inflows to the tune of Rs. 38,018 crore, which pushed Sensex and Nifty by 6% and 5%, respectively.
Nonetheless, in the future course of time, the performance or interest of investors in the primary market will primary be influenced by how secondary market pans out in the wake of global headwinds and election outcome. And so if the election results come against expectations then companies may even let their approvals laps. At present some 64 companies have SEBI nod to go-ahead with IPO plan.