FPIs Inject ₹20,200 Cr in July, Ending Selloff
By Market Desk
Foreign Portfolio Investors reversed a four-month selling streak, injecting ₹20,200 crore into Indian equities in July. Discover the reasons behind this renewed interest.
Foreign Portfolio Investors (FPIs) turned net buyers in Indian equities during July, infusing Rs 20,200 crore and effectively reversing a four-month period of continuous selling.
Key FPI Inflow/Outflow Figures
- July 2026 Equity Inflow: Rs 20,200 crore
- June 2026 Equity Withdrawal: Rs 49,340 crore
- May 2026 Equity Withdrawal: Rs 32,963 crore
- April 2026 Equity Withdrawal: Rs 60,847 crore
- March 2026 Equity Withdrawal: Rs 1.17 lakh crore
- Year-to-Date 2026 Total Withdrawal: Rs 2.54 lakh crore
- Total 2025 Withdrawal: Rs 1.66 lakh crore
This substantial July inflow follows significant withdrawals earlier in the year, with FPIs collectively pulling out a net Rs 2.54 lakh crore from Indian equities so far in 2026, exceeding the Rs 1.66 lakh crore withdrawn throughout 2025, according to Central Depository Services (India) Ltd (CDSL) data.
Drivers of Renewed Interest
- Relative stability of domestic markets
- Attractive valuations of large-cap stocks
- Improving corporate earnings
- More conducive global economic environment
- Weakening US dollar
- Expectations of US interest rates nearing peak
Market analysts attribute this renewed interest to multiple factors. V K Vijayakumar, Chief Investment Strategist at Geojit Investments, noted FPIs are increasingly looking towards stable markets like India, citing excessive volatility and concentration risks in other markets such as South Korea and Taiwan.
The stability of the Indian rupee and fair valuations among large-cap Indian stocks are also contributing factors. Vedant Gupte, Co-Founder and CEO of Trackk, pointed to strengthened investor sentiment from better-than-expected June quarter earnings across various sectors, especially in IT stocks, which saw a sharp re-rating as AI impact concerns eased.
Debt Market Attracts FPIs
- July 2026 Debt Inflow (General Route): Rs 29,212 crore
- July 2026 Debt Inflow (Fully Accessible Route): Rs 3,033 crore
Foreign investor interest extended beyond equities into the debt market during July. FPIs injected Rs 29,212 crore via the general route and an additional Rs 3,033 crore through the fully accessible route.
Looking ahead, the direction of foreign flows will be influenced by global developments, including crude oil price movements and US-Iran geopolitical tensions. Domestic triggers such as the Q1FY27 earnings season and the Reserve Bank of India’s monetary policy announcement on August 5 will also play a crucial role.