Indian equity markets are struggling to react to positive macro news such as strong gross domestic product (GDP) growth and a softer Reserve Bank of India (RBI) policy stance. Ashish Gupta, Chief Investment Officer at Axis AMC, said the issue is not foreign investors selling but the surge in fresh equity supply hitting the market.

Gupta explained that new listings and stake sales have overwhelmed investor demand. India is set to cross 100 initial public offerings (IPOs) in the current year, compared with 91 last year, introducing around ₹1.8 lakh crore worth of equity. He added that stake sales by private equity firms and promoters have been much larger. “The total amount of supply this year will probably be close to something like ₹5.5 lakh crore or north of that,” he said, calling it an

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