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Nifty 50 stays below 25,000 as IPO boom strains liquidity
The index is down about 7% this year after a record 26,373 on Jan. 5, while 172 IPOs have raised around ₹77,400 crore through Aug. 25.
India's Nifty 50 has remained stuck below the 25,000 level for much of the past six months, amid a two-year downtrend driven by weak earnings, foreign capital outflows, and currency weakness, according to LiveMint Markets.
Over the last two years, the benchmark has fallen about 2%, and it is down 2.5% over the past year. So far in 2026, the index has declined by more than 7% after reaching a record high of 26,373 on Jan. 5, with the last time it crossed 25,000 occurring on Feb. 27.
Some analysts point to a surge in IPOs as a source of curtailed liquidity in secondary markets. Swastika Investmart said 59 mainboard and 113 SME IPOs have come to market this year, as of Aug. 25, raising about ₹77,400 crore in total, including about ₹72,000 crore from mainboard listings.
Others say elevated oil prices are the biggest near-term concern, linking higher imports to pressure on the rupee and potential selling by foreign investors. Equinomics Research founder G Chokkalingam warned that if crude again breaches $100 per barrel, it could disrupt recent inflows, and argued that continued IPO momentum is limiting liquidity to secondary trading.
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