India’s stock market sees a resurgence as foreign IPOs attract global capital amid currency pressures

Foreign companies are increasingly listing in India, signalling a market revival that balances robust domestic investor demand with rising capital outflows and currency challenges amid global economic shifts.

Foreign companies are increasingly tapping India’s stock market to raise cash, a sign that one of the world’s busiest venues for initial public offerings is regaining momentum after a recent lull. The latest example is SBI-Amundi, while the broader trend also reflects a growing willingness among multinational groups to list Indian units and monetise local operations.

That revival comes with a contradiction. India’s domestic investor base is deep and still expanding, giving new issues a ready pool of demand, but the country is also facing heavier capital outflows and renewed pressure on the rupee. LiveMint has reported that the boom in retail savings plans has made it easier for foreign portfolio investors to exit local equities, adding to pressure on the currency as global bond yields rise and trade tensions persist.

At the same time, foreign investors have not abandoned India. Coverage by The Times of India and other Indian business newspapers shows that foreign portfolio investors poured roughly Rs 1.5 lakh crore into Indian equities in 2023, even after leaving in 2022, underscoring how quickly sentiment can shift when global and domestic conditions move in tandem.

For issuers, the appeal remains clear: India offers scale, liquidity and a large class of local investors eager to back new listings. But the market is no longer a one-way story of easy capital inflows. As Business Standard has noted, IPO fundraising softened in 2023 even as a number of companies delivered strong first-day gains, suggesting that investors are becoming more selective as valuations, currency moves and foreign flows become more important.