FPIs turn buyers for second month, invest ₹30,919 crore in August
The inflow follows ₹20,200 crore invested in July, marking a sharp turnaround after four consecutive months of heavy selling
Foreign portfolio investors (FPIs) added ₹30,919 crore to Indian equities in August, continuing their buying trend for the second straight month. This comes after a sharp shift from ₹49,340 crore withdrawn in June and other heavy withdrawals in April and March. The fresh inflow follows ₹20,200 crore invested in July. FPIs' buying spree follows the worst six-month period in years, signaling a possible trend reversal.
Despite the strong inflow, FPIs remain net sellers in Indian equities for 2026, with a total outflow of ₹2.23 lakh crore, higher than the ₹1.66 lakh crore outflow in 2025. Key drivers for FPI flows into India include the reversal of the chip trade, stability in the rupee, and improving earnings growth. Corporate earnings showed signs of improvement in the June quarter, easing concerns around earnings slowdown.
Resilient economic activity and strengthening credit growth also bolstered confidence in India's medium- to long-term growth prospects. Global factors such as easing geopolitical concerns and expectations of softer U.S. interest rates also contributed to the buying trend.
Written by urgent.news from The Hindu's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
