FPIs Invest ₹23,544 Cr in Indian Equities in August
By Market Desk
Foreign Portfolio Investors injected ₹23,544 Cr into Indian equities in August, continuing July’s buying trend. Bajaj Broking highlights crude oil and US-Iran tensions as risks.
Foreign Portfolio Investors (FPIs) injected a substantial ₹23,544 crore into Indian equities during August, marking a continuation of the robust buying trend observed in July. This significant inflow, following ₹20,200 crore in the preceding month, underscores a notable shift in investor sentiment towards the Indian market.
This sustained interest represents a crucial turnaround after a period of prolonged selling, with FPIs divesting from Indian markets for four consecutive months from March to June 2026. Despite these recent positive inflows, FPIs still register as net sellers for the current calendar year 2026.
FPI Investment Overview
- August FPI Inflow: ₹23,544 crore
- July FPI Inflow: ₹20,200 crore
- Calendar Year 2026 Cumulative Outflows: ₹2.30 lakh crore
- Calendar Year 2025 Total Withdrawals: ₹1.66 lakh crore
Pabitro Mukherjee, Deputy Vice President-Research at Bajaj Broking, provided insights into institutional investor activity, noting a contrast between FII and DII movements. While Foreign Institutional Investors (FIIs) were net sellers during the specific review week, their broader activity over an extended period showed net purchases.
Institutional Flow Details
- FII Net Purchases (July 20 – August 21): ₹12.82 billion
- DII Deployment (Review Week): ₹173.2 billion
- DII Aggregated Purchases (Extended Period): ₹483.9 billion
Market Concerns and Index Performance
Mukherjee further highlighted key market concerns contributing to a corrective bias observed across benchmark indices. Elevated global crude oil prices and ongoing geopolitical tensions involving the US and Iran are significant factors influencing current market dynamics.
The Nifty 50 index registered a slight decline of 0.5 percent, closing the period at 24,252, reflecting the cautious sentiment. In contrast, the broader market, specifically the Nifty Smallcap 100 index, demonstrated strong performance by reaching a new all-time high.
Investors are advised to maintain vigilance regarding crude oil price trajectories and developments in US-Iran geopolitical relations. These two elements are critical indicators for anticipating future market direction and overall investor confidence.