Market Insight: Large IPOs and Liquidity Drain?

Interesting chart i saw and thought will share with my readers.

Large‑sized IPOs have historically drained liquidity from the financial system, often triggering short‑term corrections in the secondary market as funds flow out. India first witnessed this in January 2008 with the Reliance Power IPO (₹ 11,000 crore) — markets fell sharply soon after listing, amplified by global bearish sentiment.

Since then, several large IPOs have followed, occasionally leading to corrections, though none as deep as 2008. While a correction post‑IPO remains a possibility, its magnitude isn’t the norm — external catalysts like rising crude prices or rate‑hike fears can amplify volatility.

📊 Upcoming heavyweights to watch:

  • NSE IPO: ₹ 22,500 crore
  • Jio Platforms IPO: ₹ 33,000 – ₹ 37,000 crore (expected)

A look at past IPOs on the chart shows how liquidity shifts can ripple through market trends — worth keeping an eye on as these new giants approach listing.

Happy Investing!

RaVi

This note is shared here strictly for educational and information purpose only and not a prediction or advise. Fund Wallet is a AMFI registered distributor of Mutual fund with ARN-111231 and not a Registered Investment Advisor. We do not predict or advise on the Financial Markets. Investments in equity market is subject to market risk, please read all the risk related documents before investing. Source given in the Image and Fund Wallet does not guarantee the accuracy of the same, please do your own due diligence.


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