Barrage of Stock Supply Is Latest Test for Indian Share Market

A surge in share supply from initial public offerings and sales to institutions is adding pressure on Indian equities, which are already grappling with weak earnings and selling by overseas investors.

Hyundai Motor India Ltd. raised $3.3 billion in the nation’s largest IPO on Thursday, and further listings worth $6 billion have been approved by the regulator, according to data from primedatabase.com.

This supply overhang coincides with slowing corporate earnings and withdrawals of over $7 billion this month by global funds. While aggressive purchases by local institutions have buffered the outflows, the stock marketis still set for its worst ...