Robust domestic flows and market stability drove over USD 11 billion of capital market activity in Q2CY24

Nifty soars 7% this quarter hitting an all-time high despite election related volatility, implying increasing market stability. India’s GDP in FY23-24 grew by 8.2% beating estimates. Expanding consumer base & liberalization of sectors such as defense, AI and semiconductors fueling robust market growth. FIIs sold heavily in April and May but turned net buyers in June. India’s valuations remain attractive compared to global equity market and is likely to draw higher foreign inflows. 

Highlights

• Backed by strong inflows, small-cap and mid-cap indices outperformed the Nifty 100 by nearly 2x this quarter. Increased DII participation, along with robust corporate earnings growth, further fueled the strong performance.
• Primary market saw bigger ticket sizes with better premiums. IPO issue sizes have
  increased, as companies sense that stock markets have the appetite for larger listings.
• Over 16,000 crores raised this quarter through QIPs, driven by IT and Financial Services.
• Post resolution of election uncertainty, significant inflows from domestic mutual funds and active participation by FPIs have spurred increased activity in block trades.