Axis AMC's Gupta: IPOs & stake sales flood Indian markets, impacting valuations

• Ashish Gupta of Axis AMC states that Indian market struggles are due to a surge in fresh equity supply, not foreign investor selling.
• New equity supply from IPOs and stake sales is projected to exceed ₹5.5 lakh crore this year, significantly more than FII withdrawals.
• Increased supply and easing retail IPO participation are moderating IPO pricing by 30-40%, pressuring broader market valuations.
• Gupta notes a growing trade deficit but remains optimistic, forecasting 15-16% earnings growth next year, led by consumer, cement, auto, and financials.

Why It Matters: Rising equity supply is reshaping market valuations, affecting investor returns.