IPOs in India - Q1 FY26

Q1 FY26 witnessed just nine listings, with four each slotting under small and large issuances. Average listing gains remained muted across, with the small issuances marginally outperforming their mid-size and large counterparts. QIBs preferred small issuances over large issuances by a considerable margin. Overall, QIB participation was healthy for the quarter. Retail investors’ participation was skewed towards small issuances, with sub-par participation in large issuances. Total oversubscription, consequently, was significantly higher for small issuances, over large counterparts.

Global context and market dynamics

Global indices in Q1 FY26 witnessed mixed performance. The indices in India, the U.S., and Japan delivered double-digit returns while the leading indices across Europe, China, and Hong Kong (SAR), China, witnessed mid-to-low single-digit returns. The U.S. indices witnessed upward movements primarily in the month of Jun 2025, aided by the announcement of a trade deal with the U.K. in May and talks of a trade deal with China through the month of Jun, culminating in an announcement closer to the end of the month. This is despite the U.S. FED maintaining the EFFR in the first half of CY 2025. The upward momentum in the Japanese index in the second half of Jun 2025, was driven by net foreign inflow of ~USD4.5 billion in Japanese stocks, during the week of 28 Jun 2025.

Indian market trends and performance

Q1 FY26 witnessed three consecutive months of net equity inflow; a welcome change in direction after three consecutive months of net outflow in the segment, in Q4 FY25, with Jan 2025 recording the second highest sell-off over the past 18 months. The positive change in direction Apr 2025 onwards can partially be attributed to the tariff pause ordered by the U.S. administration in the first half of Apr 2025. The decision to pause tariffs was taken in reaction to the massive selling pressure that global capital markets witnessed, post the formalisation of tariffs. On the debt front, the trend was a mirror image of the trend of the equity segment, with the only exception of May 2025. After witnessing four consecutive months of net debt inflow, two months of Q1 FY26 witnessed sizeable amounts of net debt outflow. This can partially be attributed to the additional reductions in repo rates during the MPC meetings in Apr 2025 and Jun 2025, after the first reduction in Feb 20253, which made the Indian debt capital markets relatively less lucrative for foreign investments in the segment.