New Delhi, Oct. 1 -- Foreign institutional investors, who have been net sellers in India, have cut back on primary market investments, turning selective about IPOs amid a wave of new share offerings.

The lower FII flows into India's primary markets, according to experts, are a result of high valuations for initial public offerings, which leaves limited room for investors to make substantial gains.

The primary market is where investors buy newly issued securities such as IPO shares directly from the issuer, while turning to the secondary market to buy and sell existing securities.

Feeble FII investment in the primary market not only signals low confidence in India's equity markets but also doesn't help offset their heavy selling in the ...