Key Points
PSU Divestment Target Set at Rs 47,000 Crore for FY26
Consistent SIP Inflows Exceed Rs 20,000 Crore Monthly
Domestic Investors Inject Rs 5.7 Lakh Crore in FY25
RBI Policy Decisions to Enhance Market Liquidity
The Department of Investment and Public Asset Management (DIPAM) has set a divestment target of Rs 47,000 crore for FY26, presenting significant opportunities for investment banks.
In recent years, IPOs of major PSUs such as LIC, IREDA, and ONGC, along with offers for sale (OFS) in companies like IRCTC, HAL, and Coal India, have kept the market active, said the report by Emkay Investment Banking.
Upcoming IPOs and fundraising activities from Bharat Coking Coal, CMPDI, MNGL, IREDA, and several banks are expected to further fuel investment banking growth in FY26 and beyond.
India's equity markets have continued to witness strong investor participation. In 2024, 92 IPOs collectively raised over Rs 1.62 lakh crore, while Rs 1.36 lakh crore was mobilised through qualified institutional placements (QIPs), according to the report.
Additionally, the sustained inflow from systematic investment plans (SIPs) has provided steady support to the market, the report said.
For the past 11 months, SIP inflows have consistently exceeded Rs 20,000 crore, reaching over Rs 25,000 crore in the last five months -- a strong indicator of investor confidence.
Domestic institutional investors (DIIs) have played a vital role in supporting market stability. In FY25, DIIs invested over Rs 5.7 lakh crore, contributing to market liquidity and investor sentiment.
Meanwhile, key policy decisions by the Reserve Bank of India (RBI) are expected to further enhance market liquidity and credit growth.
The anticipated repo rate cut, relaxation of risk weights on NBFC loans, and liquidity measures will provide a boost to the financial sector.
Additionally, initiatives in the Union Budget aimed at increasing consumption are expected to create positive momentum in the economy, the report stated.
