Foreign investors continue buying spree; pour Rs 12,921 cr in first week of Aug
In early August, Foreign Portfolio Investors poured Rs 12,921 crore into Indian equities, building on their notable investments from July. This surge indicates improved investor sentiment and favorable macroeconomic conditions. Furthermore, foreign investors have displayed interest in India's debt market, resulting in additional inflows. However, it’s worth noting that despite these recent…
Foreign investors continued their purchasing trend in Indian equities, injecting Rs 12,921 crore into the market during the first week of August, according to data from CDSL. This surge in FPI activity is attributed to favorable macroeconomic indicators, anticipations of US interest rate reductions, decreasing crude oil prices, and a stable rupee.
The inflow builds upon a Rs 20,200-crore investment made by FPIs in July, marking a significant shift from four months of substantial selling. Notably, FPIs had previously withdrawn Rs 49,340 crore in June, Rs 32,963 crore in May, Rs 60,847 crore in April, and a staggering Rs 1.17 lakh crore in March. Prior to this recent buying phase, they had invested Rs 22,615 crore in February, as reported by CDSL data.
Despite this recent buying activity, FPIs have maintained a net selling position in Indian equities for 2026 thus far, having withdrawn a total of Rs 2.41 lakh crore. This outflow surpasses the Rs 1.66 lakh crore withdrawn throughout all of 2025. Experts attribute the current inflows to improving investor sentiment, driven by expectations of US rate cuts, lower crude oil prices, and a stable rupee.
Additionally, the RBI's optimistic growth and inflation outlook has bolstered confidence among investors. Vedant Gupte, Co-Founder and CEO of investment platform Trackk, noted that the de-escalation of geopolitical tensions has played a crucial role in strengthening investor confidence and fostering positive market sentiment. Pabitro Mukherjee, Deputy Vice President-Research at Bajaj Broking, highlighted that a significant portion of the recent buying has taken place in the secondary market, indicating a growing interest in listed Indian companies rather than just IPO allocations.
The sustained buying by both Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) can be linked to the resolution of geopolitical tensions, which has further enhanced investor confidence and bolstered market sentiment. V K Vijayakumar, Chief Investment Strategist at Geojit Investments, observed that FPIs are particularly drawn to sectors such as automobiles, consumer durables, and healthcare.
Moreover, FPIs have also shown a growing interest in the debt market, with additional inflows of Rs 622 crore recorded during the specified period.
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