FPIs invest Rs 23,544 crore in Indian equities in Aug on earnings revival, rupee stability

Foreign Portfolio Investors (FPIs) have significantly increased their investments in Indian equities during August, pouring in Rs 23,544 crore so far in the month. This comes after a sharp turnaround from four consecutive months of heavy selling, signaling a renewed confidence in Indian equities. The inflow is driven by improving quarterly earnings, a stable rupee, and better market prospects.

FPIs had withdrawn a substantial amount in June, May, April, and March before this buying spree began. Despite recent buying, FPIs have remained net sellers in Indian equities in 2026, withdrawing around Rs 2.3 lakh crore so far, which is more than the Rs 1.66 lakh crore outflow seen in 2025. The factors that are attracting FPIs back to the Indian market include earnings growth revival, rupee stability, and impressive growth prospects of companies in the broader market.

FPIs are selectively investing in mid-cap stocks despite elevated valuations, rather than attractively valued large banking or IT stocks. In the coming week, investors will closely monitor crude oil price movements and developments in US-Iran geopolitical tensions for further market direction. FPIs have also shown interest in the debt market, investing Rs 852 crore through the Fully Accessible Route (FAR), while pulling out Rs 995 crore through the general route.