In a significant development for the Indian financial markets, the net inflow of foreign portfolio investors (FPI) into the Indian primary market has reached a seven-month high of $1.7 billion (Rs 14,247 crore). This surge comes amid a buoyant period for initial public offerings (IPOs). The last time FPIs invested such a substantial amount was in December 2024, when they poured $2.1 billion (Rs 18,036 crore) into the primary market.The primary market, which includes IPOs and private placements, saw a notable increase in activity in July. The month recorded 13 IPOs, the highest number in any month of the current calendar year, collectively raising Rs 16,127 crore. In contrast, June saw fewer IPOs, with only eight, but the amount raised was higher at Rs 17,690 crore. This was largely due to the IPO of HDB Financial Services, which alone raised ₹12,500 crore through a combination of fresh issue and offer for sale.Despite the positive trend in the primary market, FPIs turned net sellers in the Indian secondary market in July, resulting in a net outflow of $3.7 billion (Rs 31,988 crore), reported the Economic Times. This marked the first net outflow in four months, attributed to heightened uncertainties related to global trade and geopolitical situations. Consequently, the combined net outflow from both primary and secondary markets in July amounted to $2.1 billion (Rs 17,740.6 crore).The benchmark indices have shown signs of fatigue, losing over 3% last month. Analysts warn that if this weakness persists, it could impact the flow of new IPOs in the coming weeks, thereby affecting FPI investments in the primary market.