Foreign portfolio investors (FPIs) invested Rs 12,921 crore in Indian equities in the first week of August, according to Business Today, sustaining a buying momentum driven by improving macroeconomic conditions, expectations of US rate cuts, lower crude oil prices and a stable rupee.
From heavy selling to sustained buying
The August inflow follows a Rs 20,200-crore investment in July, marking a sharp turnaround after four consecutive months of heavy selling, Business Today reported. FPIs had withdrawn Rs 49,340 crore in June, Rs 32,963 crore in May, Rs 60,847 crore in April and Rs 1.2 lakh crore in March, according to CDSL data. Prior to this selling streak, foreign investors had invested Rs 22,615 crore in February. The data shows how abruptly foreign capital flows can reverse course in Indian equities.
Monthly FPI flows at a glance
Based on CDSL data cited by Business Today, the table below tracks the recent monthly FPI flows in Indian equities:
| Period | Net FPI flow (Rs crore) |
|---|---|
| February 2026 | +22,615 |
| March 2026 | -1,20,000* |
| April 2026 | -60,847 |
| May 2026 | -32,963 |
| June 2026 | -49,340 |
| July 2026 | +20,200 |
| August 2026 (first week) | +12,921 |
*Reported as Rs 1.2 lakh crore.
Net sellers for 2026 despite recent buys
Despite the recent buying spree, foreign investors have remained net sellers in Indian equities in 2026, withdrawing Rs 2.4 lakh crore so far this year, according to Business Today. That already exceeds the Rs 1.7 lakh crore outflow recorded during the entire 2025.
Drivers behind the inflows
Market experts cited by Business Today said the recent inflows reflect improving investor sentiment, supported by a set of factors:
- Improving macroeconomic conditions
- Expectations of US rate cuts
- Lower crude oil prices
- A stable rupee
- The RBI's improved growth and inflation outlook
- Relatively low foreign ownership of Indian equities, leaving room for fresh allocations
Vedant Gupte, co-founder and CEO of investment platform Trackk, said the RBI's improved growth and inflation outlook has further strengthened confidence, while relatively low foreign ownership leaves room for fresh allocations. He added that a large share of the recent buying has come through the secondary market, signalling stronger interest in listed Indian companies rather than merely IPO allocations.
After the July inflow of Rs 20,200 crore, the August first-week figure marks the second consecutive month of buying, Business Today reported. However, the cumulative 2026 outflow of Rs 2.4 lakh crore remains well above the Rs 1.7 lakh crore recorded in all of 2025, underscoring that the recovery in foreign flows is still at an early stage according to the data cited.
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