India IPO Boom: Why Dalal Street Liquidity Is Shifting

The IPO market is heating up, with six IPOs launch today, raising questions about investor sentiment and liquidity in the secondary market. Several recent IPOs have listed at significant premiums, with some even doubling on listing, pointing to strong bullish sentiment in the primary market. However, the surge in new issues could also be pulling money away from listed stocks. Sanjay Sinha, Founder, Citrus Advisors, says the sheer volume of IPOs, especially with several large issues still ahead, can become a negative factor for the secondary market when overall market sentiment remains weak. The IPO boom is reshaping investor behaviour.