Bullish Signal: India Primary Markets to See Q2 Traction, Says BofA

Arbind Maheswari from BofA Securities predicts that India's primary markets, encompassing IPOs and FPOs, will likely begin to gain traction in the second quarter of 2026. This revival is expected to be gradual, rather than sudden, and is dependent on a reduction in overall market volatility.

A re-opening and strengthening of the primary markets is a positive indicator for the broader economy and investor sentiment. It signifies that companies are confident enough to raise capital, and investors are willing to deploy funds into new listings, suggesting a more stable and growth-oriented market environment.

While no specific stocks are named, a buoyant primary market generally benefits investment banks and financial services companies involved in underwriting and advisory roles. Companies like ICICI Securities (ICICISECUR), JM Financial (JMFINANCIL), and Edelweiss Financial Services (EDELWEISS) could see increased business. It also provides fresh avenues for institutional and retail investors.

Traders should closely watch for signs of sustained reduction in market volatility, as measured by indices like India VIX. Additionally, keep an eye on the pipeline of companies filing for IPOs and the initial investor response to any new listings in Q2 2026 for confirmation of this trend.

• •Primary markets may start seeing some traction in Q2.
• •Revival will likely 'creep back up' once volatility compresses.
• •Arbind Maheswari, head of India equities at BofA Securities, made the statement.
• •Investors look for investable ideas at scale when markets are steady and rising.
• •Risk flag: Persistent market volatility could delay the primary market revival.