{
  "id": 2824129,
  "title": "FPIs are back: Strong earnings, stable rupee and robust IPO market attract foreign capital",
  "url": "https://urgent.news/2026/08/23/fpis-are-back-strong-earnings-stable-rupee-and-robust-ipo-market",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-23T12:35:48.000Z",
  "source": {
    "name": "Hindu BusinessLine",
    "slug": "hindu-businessline",
    "url": "https://www.thehindubusinessline.com/markets/fpis-are-back-strong-earnings-stable-rupee-and-robust-ipo-market-attract-foreign-capital/article71380367.ece"
  },
  "original_language": "en",
  "account": "Foreign portfolio investors (FPIs) are returning to Indian equities, buoyed by strong earnings, stable currency, and a resilient domestic market. After months of heavy selling, FPIs turned net buyers in July and August, purchasing ₹20,200 crore and another ₹23,544 crore of equities, respectively. While overall FPI flows for 2026 remain negative at ₹2.31 lakh crore, the recent shift indicates a growing confidence in Indian markets.\n\nSeveral factors have contributed to this renewed interest. Currency stability is a key driver, with the rupee trading around ₹95-97 per dollar. This stability has attracted foreign investors who are now focused on currency resilience rather than specific exchange rates. Vishad Turakhia, Managing Director and CEO of Equirus Securities, emphasized that stability is the primary concern for FPIs. He noted that currency stability, earnings, valuations, and changing global investment preferences collectively enhance the appeal of India.\n\nStrong corporate earnings have also played a significant role in this turnaround. Nifty-50 companies reported a 17.7% year-on-year increase in adjusted net profit for the June quarter, surpassing market expectations. Companies like Reliance Industries, SBI, and Hindalco led this growth. This positive earnings outlook has reinforced India’s appeal and encouraged foreign investors to increase their allocations.\n\nMarket dynamics have shifted as well. Valuations in AI-linked stocks have become stretched, prompting global investors to seek alternative opportunities. India, with its anti-AI trade, has become an attractive option for these investors. Prashant Shah of Definedge highlighted that improving earnings, broader market participation, and renewed momentum in mid-cap, small-cap, and micro-cap stocks have all contributed to increased foreign participation.\n\nThe primary market has been the main conduit for this foreign investment. Of the ₹23,543.99 crore of net FPI equity inflows recorded through August 21, ₹9,426 crore came through primary market offerings. This trend suggests that foreign investors are increasingly looking to participate in India’s growth story through new listings. Major offerings from the National Stock Exchange (NSE) and Reliance Jio are expected to draw significant overseas interest in the coming months.\n\nOverall, while cumulative FPI flows for the year remain negative, the recent reversal of sentiment signals a meaningful shift. FPIs are beginning to rebuild their exposure to India, driven by a combination of improving earnings, stable currency, and a robust domestic market.",
  "summary": "FPIs bought equities worth ₹20,200 crore, followed by another ₹23,544 crore of net purchases in August",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}