India's Capital Markets Shine Amid Global Uncertainty: A Look at FY26 IPO Surge

India's primary capital markets flourished in FY26, led by a surge in IPOs despite global uncertainties. Sound economic fundamentals, strong domestic investor participation, and regulatory reforms by SEBI propelled market resilience. The rise included notable increases in SME listings and a shift in household savings towards equities.

In the face of global economic uncertainty, India's primary capital markets have demonstrated remarkable resilience, emerging as frontrunners in the initial public offerings (IPOs) sector during FY26, according to the Economic Survey released on Thursday.

Bolstered by robust macroeconomic fundamentals, vibrant domestic investor participation, and continuous regulatory reforms by SEBI, the markets have maintained stability. This feat comes despite the challenges posed by trade disruptions and foreign capital outflows, with market sentiment initially dampened by US tariff measures and weaker corporate earnings.

However, corrective measures including income tax cuts and GST reforms, alongside improved corporate performance, aided market stabilization. The Nifty 50 and BSE Sensex recorded substantial gains, while the IPO volumes and mainboard listings rose significantly, underscoring India's pivotal role in global capital formation.