India's Capital Markets Show Resilience Amid Global Volatility

Strong Performance in H1 FY26

New Delhi, Dec 19: India's capital markets have exhibited remarkable resilience in the face of global fluctuations, raising ₹9.7 lakh crore through equity and debt instruments in the first half of FY26, marking a 13% increase compared to the previous year, according to a recent report.

The report from the National Stock Exchange of India Limited highlighted that equity fundraising amounted to ₹2 lakh crore, which included ₹64,363 crore generated from initial public offerings (IPOs).

In total, there were 122 new listings, comprising 54 on the mainboard and 68 on the SME platform, contributing approximately ₹4.1 lakh crore to market capitalization, as per the exchange's summary of market activities in 2025.

The report attributed the GDP growth of 8% year-on-year in H1 FY26 to strong consumption patterns, bolstered by income tax reforms and rural demand, alongside increased exports and sustained public capital expenditure.

While high-frequency indicators presented a mixed picture, they remained generally positive, with strong GST collections, purchasing managers' indices (PMIs), services exports, and foreign exchange reserves of $686 billion, contrasted by occasional weaknesses in industry and credit.

The exchange noted that its registered investor base surpassed 12 crore as of September 22, 2025, with an increase of 1 crore in just eight months. Notably, women represented nearly 25% of investors, and 55.6% of new investors were aged 30 or younger.

Uttar Pradesh continued to lead in new registrations for the 32nd consecutive month, bringing the total client accounts to around 23.7 crore.

Following a rebound in October, the markets largely traded sideways into December, with persistent foreign portfolio investor (FPI) selling being counterbalanced by domestic institutional support and steady systematic investment plan (SIP) inflows.

The Nifty 50 index recorded a 10.2% year-to-date increase, reflecting relative underperformance but improved internal stability.

Additionally, another report indicated that the earnings season for the September quarter of FY26 showed double-digit growth in EBITDA and profits for sectors such as hospitals, capital goods, cement, electronics manufacturing services, ports, non-banking financial companies (NBFCs), and telecom.

Estimates for Nifty earnings per share for FY26 to FY28 suggest a compound annual growth rate (CAGR) of nearly 14%.