Goldman Sachs has emerged as the top-ranked global investment bank in India's ECM league tables for the first-half of 2026 according to Dealogic, positioning itself well as foreign investment flows return to the country's capital markets. As reported by Moneycontrol, India accounted for roughly 8-10% of global ECM volumes during 2024 and 2025, compared with a historical average of just 3-4%. The bank has advised on several landmark transactions including marquee IPOs such as ICICI Prudential AMC, HDB Financial Services and Bajaj Housing Finance, alongside large block deals and promoter stake sales. Foreign participation has remained healthy across recent deals, with overseas investors accounting for nearly 40-45% of allocations including sovereign wealth funds, long-only institutional investors, and global mutual funds.
Global investors are showing increased interest in India's equity markets, with corporate earnings and economic performance remaining quite strong. According to Sunil Koul, global emerging markets equity strategist at Goldman Sachs, there is room for some catch-up rally in India after the underperformance and improvement in earnings growth. Foreign investors are diversifying portfolios away from concentrated tech positions, with banks and tourism identified as attractive investment pockets within India. Despite headline outflows from listed equities, foreign investors have continued deploying substantial capital into Indian primary issuances, with FPIs investing approximately $12.5 billion in 2024 and close to $10 billion in 2025 despite secondary-market selling. The primary market tells a very different story, with foreign investors maintaining strong participation in IPOs, QIPs and block deals.
When oil has rebounded to $90-100 levels, it will impact macros and the market, according to Koul's analysis. However, he notes that India's market may see a catch-up rally after recent underperformance, despite the oil price headwinds. The strategist emphasizes that India is an oil-importing market, making it vulnerable to oil price volatility. Recent developments show oil prices climbing to their highest levels in over a month after U.S. President Donald Trump threatened further action against Iran following attacks in the Strait of Hormuz. West Texas Intermediate crude futures rose 2.9% to around $86.78 a barrel, while Brent crude gained 3.2% to $93.96 per barrel. Despite these concerns, India continues to command a valuation premium over other emerging markets, with the premium historically ranging between 55% and 70% on forward earnings.
India's IPO pipeline continues to remain strong despite concerns around valuations, with several large IPOs and equity offerings expected over the next 12 to 18 months. According to Sunil Khaitan, Managing Director and Head of Financing at Goldman Sachs, the upcoming pipeline provides exactly that opportunity for global investors who need sizeable, liquid companies where they can deploy hundreds of millions of dollars efficiently. The market structure has evolved significantly, with domestic institutional investors now effectively setting the benchmark for pricing in large equity deals. Companies typically float only 15-20% of their equity at the time of listing, while private equity investors may own 60-70% of the business, creating a more sustainable monetisation process rather than aggressive exits at listing. The mid-cap and small-cap universe will be a force multiplier in corporate capex, with increasing participation from these segments reflecting broader economic growth.
Banks are one pocket of the market where valuations are reasonably cheaper relative to their range and relative to the rest of the market. According to Koul's assessment, if foreign appetite starts to come back, it's one large liquid pocket of the market that is viewed as a macro bet on India. Energy self-sufficiency and energy reliance has put the spotlight on power companies, renewables, utilities and power-equipment makers. Tourism is a theme where there is a likelihood of some potential earnings upgrades. Manufacturing remains the standout sector with strong investor interest in industrial companies, defence manufacturers, and precision engineering businesses. Healthcare offers investors something quite unique—combining defensive characteristics with robust structural growth, making it particularly attractive for both domestic and international investors. Innovative pharmaceutical and biotechnology companies carry binary risks but have investors willing to assume that risk, with India having companies undertaking potentially game-changing work in antibiotics, biosimilars and specialised pharmaceuticals.
