FPIs reverse 4-month selling trend with ₹20,200 cr inflow in July
Despite the turnaround in July, foreign investors have pulled out a net ₹2.54 lakh crore from Indian equities so far in 2026, way more than the ₹1.66 lakh crore withdrawn during the whole of 2025
In July, foreign investors reversed a four-month selling trend of Indian equities, with a net influx of ₹20,200 crore, according to data from the Central Depository Services (India) Ltd (CDSL). The inflow was driven by attractive valuations, improving corporate earnings and easing global headwinds. FPIs had withdrawn a total of ₹2.54 lakh crore from Indian equities so far in 2026, significantly more than the ₹1.66 lakh crore withdrawn throughout 2025.
Experts cited stable domestic markets, reasonable valuations of large-cap stocks, improving earnings prospects and a more favorable global environment as factors contributing to the renewed foreign investor interest. Market volatility in countries like South Korea and Taiwan, as well as chip trade concentration risks, prompted FPIs to seek the stability offered by the Indian market.
The rupee's stability and India's large-cap stocks' fair valuations further facilitated the inflows. Additionally, improved earnings prospects, particularly in the IT sector, boosted investor sentiment. The debt market also saw substantial inflows from FPIs, with ₹29,212 crore invested through the general route and ₹3,033 crore through the fully accessible route.
In the coming month, investors will closely monitor crude oil prices, US-Iran tensions, and domestic factors such as the Q1FY27 earnings season and the RBI's monetary policy scheduled for August 5.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
