Photographer: Dhiraj Singh/Bloomberg

Red-Hot IPOs an Ominous Sign for India’s Record Stock Rally

India’s red-hot IPO market doesn’t bode well for the nation’s record-beating rally. The NSE Nifty 50 Index has slid an average 10 percent to 12 percent in the one to three months after every share sale exceeding 55 billion rupees ($850 million) since 2000, said Ninad Tamhanekar, an analyst at IndiaNivesh Securities Ltd. New India Assurance Co. topped that mark last week, at least the fourth such offering from an insurer that’s tapped markets since September, prompting IndiaNivesh to ask in a recent note if history would be repeated.

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