FPIs Invest ₹12,921 Cr in Indian Equities: August Inflows Surge

Foreign Portfolio Investors (FPIs) injected ₹12,921 crore into Indian equities during the first week of August. This marks a significant positive shift, following a period of substantial outflows from the market.

August Sees Renewed Inflows

This recent capital infusion follows a ₹20,200 crore investment recorded in July, signalling a robust reversal after four consecutive months of sustained selling pressure.

• ₹12,921 crore invested in the first week of August.
• ₹20,200 crore invested during July.

The renewed interest is primarily attributed to improving macroeconomic conditions within India, alongside expectations of future interest rate cuts in the United States. Additionally, declining crude oil prices and a stable Indian rupee have contributed to this positive sentiment.

Tracking Prior FPI Movements

Before this recent buying spree, FPIs had withdrawn considerable capital from the Indian market over several months, reversing a prior inflow in February.

• June: ₹49,340 crore withdrawn.
• May: ₹32,963 crore withdrawn.
• April: ₹60,847 crore withdrawn.
• March: A substantial ₹1.2 lakh crore withdrawn.
• February: ₹22,615 crore invested (according to CDSL data).

Despite the recent positive momentum, foreign investors remain net sellers in Indian equities for the year 2026. They have withdrawn a total of ₹2.4 lakh crore so far, which already exceeds the ₹1.7 lakh crore outflow recorded throughout the entirety of 2025.

Expert Outlook on Investor Sentiment

Market experts view the current inflows as a reflection of enhanced investor sentiment. Vedant Gupte, co-founder and CEO of investment platform Trackk, highlighted several contributing factors.

• The Reserve Bank of India’s improved growth and inflation outlook has boosted confidence.
• Relatively low foreign ownership in Indian equities provides ample scope for fresh allocations.
• A significant portion of recent buying occurred through the secondary market, indicating strong interest in already listed companies.

This sustained inflow suggests a growing confidence among foreign investors in India’s economic trajectory and market potential.