Stocks zoom despite record equity issuances, beating historical trend

Trend challenges theory that large share sales suck out secondary market liquidity, say analysts.

Dalal Street has witnessed record equity issuances over the past four weeks. Share sales worth Rs 61,000 crore ($8.1 billion) have been lapped up by investors, without hampering secondary market prospects.
 

In fact, stocks have climbed despite such these issuances, challenging the theory that large equity issuances suck liquidity out of the secondary market. 

Though large primary issuances have indeed, in the past, weighed on share prices in the listed universe, market players say it is a different story this time.

“Stock markets have done well because of these large issuances, not in spite of them,” said an executive with