September IPO rush draws $1 billion FPI money even as listed stocks see record outflows

Foreign portfolio investors took sharply different positions across the primary and secondary markets in 2026 through the end of September. While they directed billions of dollars toward new issues, they also reduced their holdings of listed equities.

Primary-market investment contrasts with equity selling

FPIs invested $5.9 billion in the primary market during the period, according to the available data. The figure comes as September’s IPO activity attracted about $1 billion in FPI money.

At the same time, FPIs sold $33.7 billion worth of equities in the secondary market through the end of September. The two figures highlight a clear difference between participation in new offerings and activity in already-listed stocks.

Market impact

The flow of funds into the primary market provides capital for companies raising money through new issues. However, the much larger value of secondary-market sales points to substantial selling pressure in listed equities during the same period.

The figures do not explain the reasons behind the contrasting flows or indicate how the pattern will develop after September. They do, however, show that primary-market investment remained active even as secondary-market outflows reached a markedly higher level.

Key figures through September

• $5.9 billion invested by FPIs in the primary market
• $33.7 billion sold in secondary-market equities
• About $1 billion directed to September IPO activity

Overall, 2026 foreign portfolio flows through September reflected strong primary-market participation alongside significant selling of listed stocks.