According to KPMG, India's National Stock Exchange (NSE) is on track to become the world's largest major stock exchange by value, surpassing Nasdaq. This growth is driven by strong domestic capital flows and increasing investments from households. Many companies are also seizing opportunities to raise funds while valuations remain high.
India has become Asia's top IPO market, with a surge in offerings from companies like Swiggy and Hyundai. It is now the second-largest global equity financing market, just behind the United States. Despite a slowdown in economic growth and corporate earnings, the Indian market remains active with numerous smaller transactions. Although foreign investors have withdrawn significant funds recently, local bankers are optimistic about continued market activity into the new year.
Global bankers are positive about India's prospects but caution that its growth could be overshadowed by recoveries in the US and Europe. The global IPO market is expected to normalize by 2025.
