New Delhi: India’s capital markets closed calendar 2025 on a mixed note, with strong IPO activity driven by volume rather than value, continued expansion in demat accounts, but sustained foreign portfolio investor (FPI) outflows, according to SEBI’s Monthly Bulletin for January 2026.
The primary market witnessed 51 IPOs in December 2025 that together raised ₹23,553 crore, SEBI said. While the number of issuances remained elevated, the total amount mobilised was lower than peak fund-raising months, indicating that activity was largely volume-led. Offer-for-sale (OFS) components dominated large mainboard IPOs, while SME issues were primarily fresh capital-driven, underscoring their role in capital formation.
Overall, corporates mobilised ₹1.5 lakh crore during December across equity, debt and REITs/InvITs, taking total fund mobilisation in FY26 so far to ₹10.85 lakh crore. Debt continued to account for the bulk of fundraising, with private placements remaining the preferred route.
In the secondary market, benchmark indices snapped a three-month rally. The Sensex and Nifty slipped 0.6% and 0.3%, respectively, during December, while midcap and smallcap indices also declined. Metal stocks outperformed, aided by firm global prices, whereas realty, media and healthcare stocks lagged.
Foreign portfolio investors remained net sellers for the month, withdrawing ₹38,569 crore across segments. Equity outflows stood at ₹22,611 crore, contributing to a record annual equity sell-off of ₹1.7 lakh crore in 2025, driven by relative underperformance, high valuations and global risk aversion. FPIs also turned net sellers in debt, pulling out ₹15,399 crore, largely from fully accessible route securities, amid rising bond yields.
Domestic participation, however, stayed resilient. Demat accounts crossed 21.6 crore by end-December, with strong additions at CDSL and NSDL. Mutual fund assets under management eased marginally to ₹80.23 lakh crore, even as equity-oriented schemes continued to see net inflows, offset by heavy redemptions from liquid and money market funds.
SEBI noted that Indian markets remain relatively expensive compared with global peers, though valuations have moderated after recent corrections. The Nifty’s trailing price-to-earnings ratio stood at 22.1 at end-December, down from 24.2 a year earlier.
The bulletin said December’s data reflected a market navigating global uncertainty with strong domestic participation, even as foreign investors stayed cautious and fund-raising concentrated in fewer large-ticket issues.