New Delhi: Despite global economic uncertainty, Indian stock markets continue to rise strongly.
On the last day of September, a remarkable and unprecedented 15 firms filed their IPO documents with the Securities and Exchange Board of India, setting a new record in the Indian financial landscape.
This brought the total filings for the month to 41, the highest number of IPO document filings in a single month.
According to market watchers, the surge in draft red herring prospectus (DRHP) filings happened as audited financials for the quarter ending March 31 are valid only until September 30.
“We forecast more than Rs 1.5 lakh crore of fundraise via IPOs this year. An increasing number of growth-stage businesses will hit the street. Moreover, we will have a trend of multinationals coming to tap the Indian capital market,” said Mahavir Lunawat, Managing Director, Pantomath Capital Advisors.
“Besides, several other market liquidity parameters, notably monthly mutual fund flow, have doubled since last quarter, and we are getting close to Rs 40,000 crore of money every month. This has fuelled capital market buoyancy phenomenally,” he added.
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The Indian equities markets have closed at all-time highs, showing investor confidence fuelled by anticipated changes in the local interest rate cycle following the US Federal Reserve’s recent 50 basis point rate drop. This drop is expected to lead to a more favourable interest rate environment in India, making equities a more attractive investment option.
Experts believe that the overall trend in India’s equity market is not just positive, but also promising, instilling a sense of optimism among investors and analysts.
Furthermore, the inclusion of Indian sovereign bonds in JP Morgan’s global debt indices has drawn approximately $18 billion in foreign investment over the last year, with further growth expected after recent US interest rate decreases.
According to economists, this surge is cutting bond yields and borrowing costs, making Indian debt more appealing to overseas investors. With future monthly inflows projected to range from $2 to $3 billion, the increase in foreign participation in India’s bond market is a testament to India’s growing influence in the global financial arena.
According to Angel One Wealth data, over 5,450 companies were listed globally in the first half of this year, with India accounting for almost 25 percentof the total.
Last year, India had a huge number of initial public offerings (IPO). The cause for this was the significant inflow of local investors into rising enterprises and sectors.
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—IANS
