FPIs Invest ₹23,544 Cr in Indian Equities in August

Foreign Portfolio Investors (FPIs) injected a significant ₹23,544 crore into Indian equities during August, driven by improved quarterly earnings, a stable rupee, and a positive market sentiment.

This August investment follows a substantial ₹20,200 crore inflow in July, marking a sharp reversal after four consecutive months of heavy selling by foreign investors.

Previous FPI Outflows

• FPIs withdrew ₹49,340 crore in June.
• Withdrawals reached ₹32,963 crore in May.
• A substantial ₹60,847 crore was pulled out in April.
• The largest outflow was ₹1.17 trillion in March.
• Prior to this selling streak, FPIs had invested ₹22,615 crore in February, according to CDSL data.

Despite these recent inflows, foreign investors remain net sellers in Indian equities for 2026, with total withdrawals reaching approximately ₹2.3 trillion so far.

This figure already surpasses the ₹1.66 trillion outflow recorded during the entirety of 2025.

Key Drivers for Renewed Interest

Several factors are drawing FPIs back into the Indian market, as explained by V K Vijayakumar, Chief Investment Strategist at Geojit Investments.

• Earnings growth revival, clearly reflected in Q1 results.
• FPI withdrawal from the ‘chip trade’.
• Rupee stability.
• Impressive growth prospects among companies in the broader market.

Vijayakumar noted that FPIs are not primarily targeting attractively valued leading large banking or IT stocks.

Instead, they are selectively purchasing mid-cap companies, despite these segments currently exhibiting elevated valuations.

Market Watch Ahead

Investors will closely monitor crude oil price movements in the coming week, according to Pabitro Mukherjee, Deputy Vice President-Research at Bajaj Broking.

Developments surrounding ongoing US-Iran geopolitical tensions will also provide further direction for the market.

Foreign investor activity also extended to the debt market during this period.

FPIs invested ₹852 crore through the Fully Accessible Route (FAR) but simultaneously pulled out ₹995 crore via the general route.