IPO deluge, muted Q1 show and Fed taper to weigh on FPI mood in near term

Large secondary sales likely as FPIs reallocate portfolios to IPOs; sharp rise in dollar could see them pull out of India

The deluge of offerings in the primary market, a muted results season and increasing talks of a Fed taper may quicken the pace of overseas investors selling Indian equities in the near term.  

The next few weeks may see a dozen companies tap the market for initial public offerings and raise about Rs 30,000 crore. These include the likes of Zomato, Glenmark Life Sciences, Utkarsh Small Finance Bank and Seven Islands Shipping.

"FPIs investing across markets typically have an India weightage, more or less in line with the weightage in the benchmark global indices and that does not change frequently.