What's Hot: IPOs Hit ₹1.75L Cr High - But Smallcaps Crash Hardest In 7 Years

As 2025 draws to a close, India's equity markets delivered a mixed verdict. Mainboard IPOs shattered records, raising an unprecedented ₹1.75–1.76 lakh crore through 103 listings—the highest ever—fueled by strong domestic liquidity and marquee names. Yet, initial listing gains often faded, with only about 54 stocks trading above issue price by year-end, as hype gave way to valuation realities in a competitive landscape. Meanwhile, smallcaps endured their worst performance in seven years, with the BSE/Nifty Smallcap indices down ~7–9% YTD—contrasting sharply with Nifty 50's ~10% gains and Sensex's ~9%. Over-leverage, stretched valuations after prior rallies, and earnings misses triggered the rout, hitting retail investors hard in names like Ola Electric and Tejas Networks. Expert Vinit Bolinjkar highlights caution: focus on reasonable valuations, strong sector tailwinds, and quality pedigrees for future IPOs and smallcap recovery. With corrections easing valuations and liquidity abundant, selective opportunities may emerge in 2026—though global risks linger. A year of fundraising highs and broader market caution—stay tuned for 2026 trends!