India’s primary market remained strong in FY26 with 153 IPOs collectively raising Rs 2,01,442 crore, even as broader equity markets underwent a correction, a new report said on Monday.
In its outlook for FY27, HDFC Securities highlighted that robust IPO activity reflects sustained investor appetite and confidence in India’s growth story despite global uncertainties and market volatility.
The report noted that India’s macroeconomic fundamentals remain resilient, with real GDP growth projected at around 6.5 per cent for FY26–FY27 and nominal GDP expected to expand by 10–11 per cent.
Government-led infrastructure spending continues to play a key role, with capital expenditure likely to account for nearly one-third of total expenditure in FY27.
Inflation is expected to remain under control at around 4.5 per cent, alongside a targeted fiscal deficit of 4.3 per cent, the report said.
At the same time, external pressures persist. The Indian rupee remains under strain due to relatively weak foreign direct investment inflows and continued foreign portfolio investor outflows, coupled with a widening trade deficit.
These factors have contributed to an ongoing depreciation trend that began in 2022.
On the earnings front, the report expects overall corporate earnings to grow by around 10 per cent, although performance is likely to vary across sectors.
Banks, consumer discretionary, metals and telecom are expected to see gradual improvement, while the energy sector may face some pressure.
Valuations have corrected in recent months, particularly in midcap and small-cap segments, though they still remain above long-term averages.
Meanwhile, benchmark indices have moved closer to historically attractive levels, as per the report.
Retail participation continues to be a key pillar of the market. The number of demat accounts has surged to over 222 million, while active equity traders crossed 1.48 crore in February 2026.
Systematic Investment Plan inflows into mutual funds have remained robust, exceeding Rs 30,000 crore annually, the report noted.
