Rs 2.8 lakh crore out, Rs 47,000 crore in: Why FIIs are selling listed stocks but chasing IPOs

FIIs are increasingly turning to India’s primary market even as they withdraw heavily from listed stocks. Foreign investors have pulled nearly Rs 2.8 lakh crore from the secondary market in 2026 but invested over Rs 47,000 crore in IPOs. The shift reflects a preference for new sectors, large allocations at predetermined prices and greater control over entry costs.