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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/span><\/p>\n India is on track for a record year in initial public offerings after the value of primary listings reached their highest year-to-date level on the back of interest rate cuts and strong domestic demand for equities.<\/p>\n The amount raised in primary public flotations so far this year has hit $6.7bn, compared with $5.4bn over the same period last year, making India the world\u2019s biggest IPO market outside the US, according to Dealogic data. Several highly anticipated listings, including Tata Capital\u2019s expected $2bn flotation, could propel India past last year\u2019s $21bn raised.<\/p>\n \u201cWe are going to see a significant acceleration in the primary market compared to the first half,\u201d said Sunil Khaitan, managing director and head of India financing at Goldman Sachs, who expects as much as $20bn to be raised in the second half of the year.<\/p>\n The country\u2019s blue-chip Nifty 50 index has recovered from a weak start to the year, when India was dealing with signs of a slowing economy, turbulence from US President Donald Trump\u2019s tariffs and a brief conflict with Pakistan. The index is now up about 7 per cent this year and nearing a record high.<\/p>\n However, with New Delhi yet to cut a trade deal with Washington and Trump threatening the country with further tariffs, India would \u201cneed a few more [IPO] deals to go well to determine if the bull market is back, especially at a time when the macro background remains uncertain\u201d, said Perris Lee, head of Asia-Pacific equity capital markets at business intelligence service Mergermarket.<\/p>\n The Indian professional\u2019s must-read on business and policy in the world\u2019s fastest-growing big economy. Sign up for the newsletter here<\/p>\n Market optimism has been underpinned by the Reserve Bank of India\u2019s reduction of interest rates by a full percentage point this year as inflation concerns ease and official data points to a recovery in the country\u2019s economy. Retail investors, which have benefited from personal income tax cuts, have been pouring household savings into mutual funds.<\/p>\n \u201cFurther central bank interest rate cuts should fuel domestic investor appetite for equities in general, including IPOs,\u201d said Hasnain Malik, head of equity strategy at emerging markets research group Tellimer. \u201cForeign institutional investors are still \u2018underweight\u2019 in India relative to their benchmark indices, which means they have capacity for these IPOs.\u201d<\/p>\n Foreign institutions have withdrawn $8bn from Indian equities this year on concerns about high valuations, but the figure has been dwarfed by domestic fund inflows of more than $42bn, according to Goldman Sachs calculations.<\/p>\n Recommended<\/p>\n Companies looking to list are rushing to take advantage of the market rebound. Joint venture ICICI Prudential Asset Management, which announced its intention to go public this week, is expected to be the third billion-dollar-plus float in India this year.<\/p>\n Investors have been encouraged by the post-IPO performance of recently listed companies.<\/p>\n HDB Financial Services has gained 5 per cent since its $1.5bn debut at the start of this month, and IT services provider Hexaware has advanced nearly 15 per cent since raising $1bn in February.<\/p>\n \u201cThese two deals certainly add to the confidence of a long list of IPO candidates in the country,\u201d said Lee of Mergermarket. \u201cWe should expect more medium- to jumbo-size IPOs to test market appetite soon.\u201d<\/p>\n Those include the listings of the Indian arm of South Korea\u2019s LG, stock brokerage Groww and ecommerce company Meesho.<\/p>\n","protected":false},"excerpt":{"rendered":" Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. India is on track for a record year in initial public offerings after the value of primary listings reached their highest year-to-date level on the back of interest rate cuts and strong domestic demand for<\/p>\n","protected":false},"author":1,"featured_media":10569,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[426,3588,1099,1889,1569],"class_list":{"0":"post-10568","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-india","9":"tag-ipo","10":"tag-record","11":"tag-track","12":"tag-year"},"_links":{"self":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/10568","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10568"}],"version-history":[{"count":0,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/10568\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/media\/10569"}],"wp:attachment":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10568"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10568"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10568"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}India Business Briefing<\/h3>\n