FPIs have poured ₹23,544 crore into Indian equities in August, reversing four months of heavy withdrawals. Q1 earnings and a stable rupee drove the shift, with mid-caps the preferred target.
Alpha Score of 68 reflects moderate overall profile with strong momentum, strong value, weak quality, moderate sentiment.
Foreign portfolio investors are back in Indian equities in force this month, pushing in ₹23,544 crore through Friday on the back of a Q1 earnings revival and a rupee that has stopped sliding.
The August tally follows ₹20,200 crore in July. Together the two months reverse four straight months of heavy selling that stripped about ₹2.6 lakh crore from Indian stocks between March and June, according to CDSL data.
March alone saw ₹1.17 lakh crore leave. April lost ₹60,847 crore, May another ₹32,963 crore, and June ₹49,340 crore. Even with the recent buying, FPIs remain net sellers of roughly ₹2.3 lakh crore for 2026 so far, already more than the ₹1.66 lakh crore they pulled out across all of 2025.
"The factors driving FPIs back are: earnings growth revival as reflected in Q1 results, FPI withdrawal from the 'chip trade', rupee stability and the impressive growth prospects of companies in the broader market," said V K Vijayakumar, Chief Investment Strategist at Geojit Investments.
He added that FPIs are not buying the attractively valued large banking or IT names. They are selectively picking mid-caps despite elevated valuations.
Foreign investors also put ₹852 crore into Indian debt through the Fully Accessible Route, though they pulled out ₹995 crore through the general route over the same period.
Pabitro Mukherjee, Deputy Vice President-Research at Bajaj Broking, said crude oil price moves and developments in US-Iran tensions would be key for direction this week.
Prepared with AlphaScala editorial tooling from the source reporting linked above. Indexable analysis may include a cited Alpha Score value. Publishing checks screen each story before release. Educational coverage, not personalized advice.