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FPIs Return to Indian Equities With ₹16,621 Crore August Inflow
Foreign investors bought ₹16,621 crore in Indian stocks in August's first half, reversing a four-month selling streak. The inflows remain sensitive to global cues, analysts said.
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Foreign portfolio investors bought ₹16,621 crore in Indian equities in the first half of August. The buying followed a ₹20,200-crore investment in July and ended a four-month stretch of heavy selling, according to CDSL data.
The reversal came after improvements in relative valuations and corporate earnings, analysts said. Expectations of softer US interest rates also supported the turn. The selling streak was brutal. FPIs pulled ₹49,340 crore in June, ₹32,963 crore in May, ₹60,847 crore in April and ₹1.17 lakh crore in March. Only February had seen a net inflow of ₹22,615 crore before the selling resumed.
Despite the August buying, foreign investors are still net sellers in 2026 by roughly ₹2.4 lakh crore. That already exceeds the ₹1.66 lakh crore outflow for all of 2025.
Manish Bhandari, CEO and Portfolio Manager at Vallum Capital, pointed to several drivers.
"The key drivers are improving relative valuations, resilient corporate earnings, expectations of softer US rates, lower currency volatility and some diversification away from crowded Korea-Taiwan AI trades."
AI had become a magnet for global capital, he added.