India ‘very favorable' for IPOs, Peak XV says, as economy and investor sentiment stay strong

India is considered to have a favorable environment for companies launching initial public offerings (IPOs). The IPO market in India is expected to remain strong in 2024 due to positive investor sentiment, a robust economy, and expectations of lower inflation and rate cuts. The country is seen as a bright spot amidst global macroeconomic uncertainty, with a resilient economic foundation. India saw 220 IPOs in 2023, making it the second-largest IPO market globally. The Indian capital markets have deepened in terms of liquidity, attracting interest in tech companies. Cross-border software, fintech, and consumer sectors are the top investment areas in India. Emerging sectors such as deep tech and semiconductors are also gaining traction.