New Delhi, August 24: Foreign portfolio investors (FPIs) have turned buyers in Indian equities again, bringing in ₹23,544 crore during August so far, according to the latest investment data.
The latest inflow follows a strong buying trend that began in July, when foreign investors put around ₹20,200 crore into Indian equities. The shift comes after a period of significant overseas selling earlier this year.
What is driving the inflow?
Improving corporate earnings, relative stability in the Indian rupee and positive expectations around the domestic economy are among the factors supporting foreign investor interest.
Of the August inflows, about ₹14,118 crore was invested through stock exchanges, while nearly ₹9,426 crore entered the equity market through primary-market investments.
Buying returns after heavy selling
The August investment marks another month of positive FPI activity after several months of withdrawals. Between March and June, foreign investors had pulled out substantial amounts from Indian equities amid global market uncertainties and changing investment preferences.
Despite the recent buying, FPIs remain net sellers for 2026 as a whole, with cumulative equity outflows still estimated at around ₹2.3 lakh crore.
Investors watch global cues
Market participants are now closely tracking global interest rates, currency movements, corporate earnings and geopolitical developments to determine whether the recent foreign buying will continue.
The return of FPI inflows in July and August is being viewed as a positive signal for Indian equities, although analysts are likely to remain cautious until the trend becomes more sustained.
