look news india
Mumbai: Taking advantage of the high valuation in the Indian stock markets, foreign institutional investors are seen selling high-priced shares and investing in the primary market. High returns on investment in the primary market. In the current year, foreign investors' purchase of shares through the primary market has been at a three-year high.
Many stocks in the Indian markets are trading at their all-time highs. The valuation of Indian stocks is relatively higher than all other markets.
Apart from getting shares at a lower price in public offering in the primary market, the returns are also higher.
Foreign investors bought a net $1.47 billion in public issues in the current month, while selling $3.42 billion in the secondary market, according to depository data.
For the current full year, foreign investors have bought $6 billion worth of shares through the primary market, the highest since 2021.
An analyst said foreign investors are finding it appropriate to get short-term viable returns in the primary market rather than waiting for long periods in the secondary market to get higher returns.
The volume of returns in the secondary market is currently declining. In the current year, India's primary market has seen public offerings of $7.30 billion, the highest in Asia. China is second with public offerings of $5.10 billion.
