Total fund mobilisation surged 122% month-on-month to ₹3.15 trillion in June, marking the highest monthly mobilisation on record according to the NSE Market Pulse report. The record-breaking performance was primarily driven by debt issuances, which rose 142% month-on-month to ₹2.59 trillion, supported by higher mobilisation through commercial papers and privately-placed non-convertible debentures. As reported by the NSE Market Pulse, this represents a significant increase from the previous month's performance.
Mumbai banking system liquidity has fallen to its lowest point since June 29, with the system experiencing a deficit of ₹2,884 crore on Wednesday. According to latest RBI data, this deficit is attributed to increased credit growth and central bank foreign exchange market actions. The current liquidity situation represents a significant deterioration from ₹13,076 crore deficit on June 29, indicating a worsening liquidity crunch in the banking system. Economists anticipate further deficits in the coming days due to these factors.
Domestic institutional investors bought equities worth ₹24,500 crore in July so far, marking the slowest pace since April 2025, as strong IPO and QIP activity absorbed capital and fund managers turned cautious ahead of Q1 earnings. According to provisional NSE data, this compares with nearly ₹85,800 crore in June and ₹82,669 crore in May. The pullback in secondary market purchases has coincided with robust primary market activity, with nine IPOs worth ₹17,283 crore and six QIPs raising ₹20,800 crore hitting the market this month. Analysts attributed the slower pace to renewed US-Iran tensions, crude oil prices rising near $100 a barrel, and the start of the June quarter earnings season.
The debt segment witnessed exceptional growth, with commercial papers issuances more than doubling to ₹1.9 trillion in June compared to ₹80,410 crore in May. Private NCD issuances also grew to ₹69,700 crore, reflecting strong funding demand from corporate entities. According to a treasury head at a private bank, the unusually broad-based bond issuances from infrastructure financiers to NBFCs and housing finance companies indicate this isn't opportunistic timing by one or two large borrowers, but a broad market view that yields may not stay attractive for long. Recent developments show companies like IndoStar Capital Finance successfully securing ₹400 crore at 9.15% through NCD allotments, demonstrating robust institutional interest in debt markets.
The equity segment recovered to ₹53,000 crore in June through higher preferential allotments and qualified institutional placements. Preferential allotments contributed the most with ₹22,500 crore, including issuances from mainboard companies and SMEs listed on NSE Emerge. Secondary market offer for sale issuances stood at ₹21,000 crore while QIPs mobilised ₹7,500 crore. The primary market had seen strains earlier this year due to geopolitical volatility, but June showed a little moderation with IPO mobilisation at ₹1,900 crore across mainboard and SMEs on NSE's Emerge platform.
