FPI Inflows Boost Indian Equities: ₹12,921 Cr in Early August
By Market Desk
Foreign Portfolio Investors inject ₹12,921 Cr into Indian stocks in early August, driven by macro tailwinds like potential US rate cuts and stable rupee.
Foreign Portfolio Investors (FPIs) injected ₹12,921 crore into Indian equities during the first week of August. This marks a significant continuation of their buying trend, reflecting improved market sentiment.
The recent surge in inflows is attributed to a combination of macroeconomic factors. Market experts point to anticipated US interest rate cuts, declining crude oil prices, and a stable rupee as key drivers.
Key Investment Figures
- August First Week Equity Inflow: ₹12,921 crore
- July Equity Investment: ₹20,200 crore
- Total 2026 Net Equity Withdrawal: ₹2.41 lakh crore
- Total 2025 Equity Outflow: ₹1.66 lakh crore
- Debt Market Contribution (General Route): ₹622 crore
This positive momentum follows a substantial ₹20,200 crore investment in July, which signaled a reversal after four consecutive months of significant selling. FPIs had withdrawn considerable amounts earlier in the year.
Previous months saw FPIs withdraw ₹49,340 crore in June, ₹32,963 crore in May, ₹60,847 crore in April, and ₹1.17 lakh crore in March. Despite the recent inflows, FPIs remain net sellers in Indian equities for 2026, with a total withdrawal of ₹2.41 lakh crore, surpassing the ₹1.66 lakh crore outflow recorded in 2025.
Expert Insights and Sectoral Focus
Vedant Gupte, Co-Founder and CEO of Trackk, highlighted that the Reserve Bank of India’s positive growth and inflation outlook, coupled with relatively low foreign ownership of Indian equities, creates opportunities for new allocations. He noted that a significant portion of the recent buying occurred in the secondary market, indicating a stronger interest in listed Indian companies over IPO allocations.
Pabitro Mukherjee of Bajaj Broking added that the de-escalation of geopolitical tensions has also boosted investor confidence. V K Vijayakumar of Geojit Investments observed that FPIs are particularly favoring sectors such as automobiles, consumer durables, and healthcare.
Beyond equities, foreign investors have also shown interest in the debt market, contributing ₹622 crore through the general route during the same period. The sustained inflows suggest a more optimistic outlook for India’s market environment.