New Delhi, July 28 -- Overseas investors, who typically favour investing in well-established companies, seem to be changing their stance as they actively participate in the primary market. July data shows that although FPIs continue to pull significant funds from the secondary market, they are increasingly preferring IPOs.

FPIs remained net sellers through most of July, offloading local equities in 14 out of 19 trading sessions so far and withdrawing a total of Rs.20,262 crore from the Indian stock market, as per the NSDL data.

This trend reflects a tepid start to the June quarter earnings season, which failed to ease valuation concerns, while the strengthening US dollar and rising US Treasury yields have also impacted inflows. The easi...