Foreign portfolio investors (FPIs) infused Rs 30,919 crore into Indian equities in August, extending their buying streak to a second straight month. The inflow follows Rs 20,200 crore invested in July, marking a sharp turnaround after four consecutive months of heavy selling.
A reversal after a rough stretch
FPIs had withdrawn Rs 49,340 crore in June, Rs 32,963 crore in May, Rs 60,847 crore in April, and a massive Rs 1.17 lakh crore in March, according to depository data. Despite the recent two-month buying streak, foreign investors remain net sellers in Indian equities for 2026 overall, with withdrawals of Rs 2.23 lakh crore so far this year, already higher than the Rs 1.66 lakh crore outflow recorded during all of 2025.
What is driving the shift
Analysts point to improving domestic earnings growth, a stable rupee, and easing geopolitical concerns as key factors behind the renewed buying. Corporate earnings showed signs of improvement during the June quarter, helping ease concerns around the slowdown that had weighed on foreign investor sentiment earlier. Global factors added support too, including expectations of softer US interest rates and a rotation of capital away from crowded AI and semiconductor trades in markets such as Korea and Taiwan.
What could still weigh on sentiment
Tensions in West Asia and uncertainty over crude oil prices remain an overhang, along with elevated US bond yields. Investors are also watching upcoming US inflation data ahead of the Federal Reserve’s policy meeting in mid-September. This is a factual market report, not investment advice.
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