Foreign investors are divesting from expensive Indian equities, selling a net $3.42 billion in the secondary market while investing $1.47 billion in initial public offerings (IPOs) due to their lower valuations and less competition. This trend reflects profit-taking as Indian stocks reach record highs, with a price-to-earnings ratio of 24 times, the highest among major global markets. A report from Societe Generale indicates that foreign purchases in the primary market have exceeded $6 billion this year, the highest since 2021. The active primary market has recorded IPO listings totaling $7.3 billion, surpassing China's $5.1 billion. Investors are attracted to the primary market's affordability and growth potential, as noted by experts like Jon Withaar from Pictet Asset Management. Analysts suggest this shift may continue as the Federal Reserve is expected to lower interest rates, encouraging investors to seek higher returns in riskier markets.