New Delhi, Oct. 26 -- Capital is actively shifting from the secondary market into a massive Rs.5 trillion primary market pipeline, as investors reallocate liquidity toward initial public offerings (IPOs) and qualified institutional placements (QIPs) amid a subdued broader market, according to Madhu Lunawat, founder of The Wealth Company Mutual Fund.

Speaking to Mint, Lunawat noted that while retail investors are chasing small- and mid-cap stocks to beat a perceived personal inflation rate of 10-12%, foreign institutional investors (FIIs) remain cautious due to elevated valuations, currency depreciation, and heavy existing exposure to private banks.

On the lack of significant foreign institutional investor (FII) inflows into India, Lunaw...