Earnings● Neutral
FPIs Turn Net Buyers of Indian Stocks in July After Four-Month Selloff
FPIs poured Rs 20,200 crore into Indian stocks in July, breaking a four-month selling streak. Stability in the rupee, reasonable large-cap valuations and improving earnings drove the reversal, strategists said.
Continue with
Foreign portfolio investors pumped Rs 20,200 crore into Indian equities in July, snapping a four-month selling streak that had drained over Rs 2.5 lakh crore from the market this year.
The July inflow follows a brutal stretch: FPIs pulled Rs 49,340 crore in June, Rs 32,963 crore in May, Rs 60,847 crore in April and Rs 1.17 lakh crore in March, according to data from the Central Depository Services (India) Ltd.
Even with the reversal, foreign investors have withdrawn a net Rs 2.54 lakh crore from Indian equities in 2026 through July – well above the Rs 1.66 lakh crore they pulled during all of 2025.
V K Vijayakumar, chief investment strategist at Geojit Investments, said the turn reflects a search for relative stability. He pointed to excessive volatility in markets like South Korea and Taiwan, plus concentration risk in the chip trade, as pushes for FPIs to look elsewhere. India's large-cap valuations and rupee stability are pulls.