The Ultimate Guide to Investing in Indian Stocks: Why Foreign Investors are Flocking to New Listings
By the world-renowned investment manager, Patturaja Murugaboopathy, and financial market journalist, Gaurav Dogra
Foreign investors are ditching overpriced Indian stocks and turning their attention to new listings in primary markets for better returns. Discover why they are making this strategic shift and how it could impact your finances.
In a recent report by Societe Generale (SG), it was revealed that foreigners have poured over $6 billion into the Indian primary market this year, marking the highest influx since 2021. This trend is driven by the lower valuations and less competition in the primary market, making it an attractive option for investors seeking higher returns.
On the other hand, Indian stocks in the secondary market are trading at record highs, with valuations surpassing those of major global markets. As a result, foreign investors have sold a net $3.42 billion worth of equities in the secondary market while purchasing a net $1.47 billion through primary market issuances this month alone.
Analysts predict that this trend will continue as the Fed prepares to lower interest rates, prompting investors to seek out riskier markets for potential gains. By understanding the dynamics between the secondary and primary markets, investors can make informed decisions to maximize their returns and secure their financial future.
In conclusion, if you are looking to invest in Indian stocks, consider exploring opportunities in the primary market where valuations are lower and growth potential is higher. Stay informed about market trends and make strategic moves to capitalize on the shifting dynamics of the financial landscape.