Resource mobilisation from the primary market not only moderated in February, but was also the second-lowest in FY26, with 17 initial public offerings (IPOs) raising `4,650 crore. Mainboard activities remained subdued, reflecting cautious participation from large issuers, as per Securities and Exchange Board of India’s (Sebi) monthly bulletin released on Friday. 

The softness in IPOs has been seen since October 2025, reflecting the pressure in the secondary market which saw volatility due to US tariffs, muted earnings growth, weakness in rupee, and volatility in crude oil prices. 

This is also in line with the trends in global markets, which too saw moderation in public issues in February. Both deal volume as well as fund mobilisation declined significantly. However, Indian remained the third-highest rank in IPO issuances. China retained its global public issuance rank, with 17 issues raising over $7 billion, followed by the US with 14 IPOs raising $4.8 billion. 

“Europe remained relatively subdued with limited contribution to overall fundraising, indicating weaker issuance momentum and a more cautious investor environment amid prevailing macroeconomic uncertainties,” states the bulletin. The overall IPO performance was moderate on their listing date, with 10 companies debuting at or above their issue price.

The secondary market saw sharp volatility in February, including a sharp correction on the day of the Union Budget and a recovery after the US-India trade deal announcement. By the end of the month, benchmark equity indices Nifty 50 and Sensex were down 0.6% and 1.2%, respectively. 

However, foreign portfolio investors (FPIs) turned net buyers after three months, recording the highest inflows in 17 months. They net bought shares worth Rs 22,615 crore after offloading a total of Rs 62,338 crore in the prior three months. 

“This reversal maybe primarily due to India-US interim trade deal, which significantly reduced the export tariffs, alongside robust Q3 corporate earnings and a growth-oriented Union Budget,” as per the bulletin.