Primary Mkts Remained Resilient In FY26; India Emerges As Global Leader In IPOs: Survey

The country's primary capital markets delivered a robust performance in FY26, emerging as a global leader in initial public offerings (IPOs) despite an uncertain environment, the Economic Survey said on Thursday.

Supported by sound macroeconomic fundamentals, strong domestic investor participation and continued regulatory reforms by Sebi, the markets remained resilient even as trade disruptions, volatile capital flows and uneven corporate earnings weighed on sentiment worldwide, it added.

While FY26 so far has been eventful for global economies and financial markets, “India's equity markets exhibited a phase of measured yet resilient performance, reflecting the interplay of supportive policies, macroeconomic conditions and sustained domestic investor participation,” the Survey noted.

Market sentiment was weighed down by the imposition of US tariff measures, weaker-than-expected corporate earnings in the first quarter of FY26 and foreign capital outflows. However, a combination of supportive measures including personal income tax cuts, GST reforms, easing of monetary policy, receding inflation and improved corporate performance in the second quarter helped stabilise markets.

During April–December 2025, the Nifty 50 and BSE Sensex gained about 11.1% and 10.1% Respectively a phase of correction and consolidation following the sharp rally in the previous fiscal.

The Survey noted that the primary markets continued to attract strong domestic and overseas investor interest, reinforcing the country’s role as a key driver of global capital formation. Total resource mobilisation through primary markets, involving both debt and equity, stood at ₹10.7lakh crore during FY26 (till December 2025).

IPO volumes during the period were 20% higher than FY25, while the amount raised rose 10% year-on-year. Mainboard listings increased to 94 from 69 a year earlier, with funds raised climbing to ₹1.60lakh crore from ₹1.46lakh crore.

A notable feature of FY26 IPO activity was the dominance of Offer for Sale (OFS) components, which accounted for 58% of total proceeds, indicating higher stake sales by existing shareholders.

Apart from mainboard listing, the small and medium enterprises (SME) segment also remained buoyant, with 217 SME listings during FY26 (till December 2025), up from 190 a year ago. Funds mobilised through SME IPOs rose to ₹9,635crore from ₹7,453crore.

The Survey highlighted that as market activity expands and new instruments and intermediaries emerge, the quality of regulatory governance becomes critical to maintaining market integrity. In this context, the Securities Markets Code, 2025, introduced in the Lok Sabha in December 2025, marks a significant step towards consolidating India’s securities laws.

The Code replaces the Securities Contracts (Regulation) Act, 1956, the SEBI Act, 1992, and the Depositories Act, 1996, and covers areas such as board independence, conflict management, transparency, investor protection, regulatory sandboxing, governance of market infrastructure institutions and ease of doing business.

The Survey also pointed to a structural shift in household financial savings towards market-linked instruments, particularly equities. During FY26 (till December 2025), 235 lakh demat accounts were added, taking the total beyond 21.6 crore. Unique investors crossed the 12-crore mark in September 2025, with nearly a quarter being women.

The mutual fund industry also expanded steadily, with 5.9 crore unique investors as of December 2025, a majority of them from non-tier-I and tier-II cities, underscoring the widening and deepening of financial participation across the country.

The share of equity and mutual funds in annual household financial savings increased from 2% in FY12 to over 15.2% in FY25, the Survey said, adding that the move coincided with a steady rise in SIP (Systematic Investment Plans) contributions.