Foreign portfolio investors have returned to Indian stocks in August after a four-month period of heavy selling, signalling improving sentiment amid supportive global and domestic conditions, though overall net outflows persist for 2026.
Foreign portfolio investors have returned to Indian equities after months of heavy selling, with buying in early August extending a rebound that began in July. According to PTI, investors poured in ₹12,921 crore in the first five trading sessions of August, following a net July inflow that marked the end of a four-month selling streak. Analysts said the shift reflects improving sentiment towards Indian assets as global and domestic conditions have become more supportive.
LiveMint reported that FPIs bought a net ₹17,227 crore of Indian equities in July 2026, helped by firmer domestic macroeconomic signals, a steadier rupee and improved global risk appetite. The brokerage and market reports cited in that coverage said healthcare, metals and consumer services were among the main sectoral beneficiaries, while some parts of the market, including autos and capital goods, still saw outflows.
The turnaround follows a bruising stretch earlier in the year. Data cited by PTI showed that foreign investors withdrew close to ₹2.5 lakh crore over four months, with the heaviest selling in March, when outflows touched ₹1.17 lakh crore. Additional withdrawals of ₹60,847 crore in April, ₹32,963 crore in May and ₹49,340 crore in June deepened the pressure on Indian shares.
Despite the recent comeback, foreign investors remain net sellers for 2026 so far. Business Standard reported that cumulative equity outflows still stand at about ₹2.6 lakh crore, above the ₹1.66 lakh crore recorded in the same period last year. Market watchers quoted in the reports said further inflows will depend on whether expectations of US rate cuts, easing geopolitical tensions, softer crude prices and continued currency stability hold up in the weeks ahead.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
