FPIs turn buyers for second month, invest ₹30,919 cr in August
However, foreign investors remain net sellers in Indian equities in 2026.
Foreign portfolio investors (FPIs) deposited ₹30,919 crore into Indian equities in August, extending their buying spree for a second consecutive month. This surge comes after a period of heavy selling for four straight months, marking a significant shift following the worst six-month stretch in years. FPIs withdrew a massive ₹1.17 lakh crore in March, followed by withdrawals of ₹60,847 crore in April, ₹32,963 crore in May, and ₹49,340 crore in June.
Prior to this buying trend, they had invested ₹22,615 crore in February, according to CDSL data. Despite this, FPIs remain net sellers of Indian equities in 2026, with total withdrawals totaling ₹2.23 lakh crore, surpassing the ₹1.66 lakh crore outflow in all of 2025. Key drivers of FPI inflows into India include the reversal of the chip trade, stability in the rupee, and improving earnings growth.
Factors such as improved domestic fundamentals, resilient economic activity, and strengthening credit growth have also contributed to investor confidence. Global factors, including easing geopolitical concerns and expectations of softer US interest rates, have further supported FPI buying. However, tensions in West Asia and uncertainty over crude oil prices continue to pose risks.
FPIs have shown returning conviction, while futures suggest lingering caution. Investors will closely monitor developments in Brent crude prices, US-Iran tensions, and US bond yields ahead of the Federal Reserve's policy meeting in mid-September. Domestic indicators such as Q1 GDP growth and inflation data will also be key for institutional flows.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
