Topic
inflows
July FPI Inflows Hit Rs 42,000 Crore, Topping February Record as Equity Buying Resumes
Foreign portfolio investors (FPIs) recorded total inflows of nearly Rs 41,796 crore in July, the strongest month in 2026, breaking a four-month equity selling streak. Equity inflows of $1.6 billion were aided by participation in the SBI Funds IPO, while debt markets attracted $9.5 billion year-to-date. Despite the recovery, year-to-date total FPI flows remain negative at $18.4 billion.
Private Bank Chiefs Temper NRI Deposit Inflow Expectations as Tax, Liquidity Constraints Bite
Top private bank chiefs are taking a cautious view of RBI's FCNR(B) deposit window, with lenders saying tax rules, overseas liquidity conditions and regulatory constraints could limit inflows below initial estimates. HDFC Bank's Sashidhar Jagdishan said potential inflows may be around $50-55 billion instead of the earlier $60-80 billion estimate, while Axis Bank's Amitabh Chaudhry cautioned against speculation on single parameters.
PE inflows into Indian real estate dip 23% to $1.13 billion in H1 2026, office sector surges
Private equity investments in Indian real estate fell 23% year-on-year to $1.13 billion in the first half of 2026, driven by a cautious global investment climate, according to a Knight Frank India report. The office sector bucked the trend with a 33% rise in inflows, accounting for 89% of total PE investments, while residential segment declined sharply.
Commodities Rise in dollar inflows via FCNR(B) deposits may add pressure on gold prices
Domestic gold prices fell 6% in the past month to ₹146,344 per 10g on July 3, driven by global weakness and expectations of substantial dollar inflows through RBI's FCNR(B) deposit scheme. The scheme, which offers higher rates and forex hedging support, has already attracted $7 billion in June, with inflows projected to reach $50 billion by October, strengthening the rupee and adding downside pressure on gold.
India Offers Up to 9% Leverage on NRI Deposits, Guarantees Returns Over 7.1% to Bolster Forex Inflows
The Reserve Bank of India has authorized banks to extend loans against foreign-currency deposits from non-resident Indians, with leverage of up to 9 times and guaranteed returns of over 7.1%. The initiative aims to boost forex inflows and strengthen currency buffers, with potential inflows exceeding $80 billion. The move mirrors a 2013 taper tantrum strategy and complements other measures to support the rupee.
Commodities Gold ETF Inflows Turn Positive After Five Weeks of Continuous Outflows
Inflows into physically-backed gold ETFs turned positive last week after five weeks of continuous exit, with net investments of $3.15 billion against outflows of $2.01 billion. The inflows were led by the US, UK, Germany, Switzerland and France. Gold prices topped $4,300 an ounce mid-week before falling on a hawkish Fed signal.
India's Silver Imports Plunge to Over Three-Year Low in May as Curbs and Higher Duties Hit Inflows
India's silver imports tumbled to their lowest level in over three years in May, dropping 87% year-on-year to $75.57 million, as the government tightened import restrictions and raised duties to 15%. In volume terms, imports plunged 94% to 33 metric tonnes, the weakest since February 2023. The measures aim to curb precious metal imports and ease pressure on the rupee and trade deficit.
India equity fund inflows hit 12-month low as West Asia risks rattle markets
Net inflows into Indian equity mutual funds declined to Rs 22,908 crore in May, down 40% from April and the lowest in 12 months, according to AMFI. Geopolitical tensions in West Asia and rising crude oil prices weighed on investor sentiment. Monthly SIP contributions remained steady at Rs 30,954 crore, providing stability despite broader market volatility.
Rupee Strengthens as Oil Prices Fall and Inflow Expectations Rise
The Indian Rupee appreciated by 0.4% against the US dollar, closing at 95.35, driven by a 2% drop in Brent crude prices. Regulatory measures and inflow expectations are reducing the currency's weakening bias.
RBI's Forex Risk Absorption to Boost Inflows by $50 Billion
The Reserve Bank of India (RBI) is set to absorb forex risks to attract overseas funds, potentially boosting inflows by $50 billion. This move involves no premium charges on FCNR(B) deposits and a 1.5% swap cost for external commercial borrowings, benefiting public sector undertakings.
RBI's Strategic Moves to Bolster Rupee Amid $75 Billion Inflows
The Reserve Bank of India is implementing strategic measures to stabilize the rupee, potentially attracting up to $75 billion in capital inflows. These efforts include maintaining the repo rate at 5.25% and expanding the Fully Accessible Route for government securities.
India's FPI Debt Inflows Surge to $95.5 Billion Since FY99
India's foreign portfolio investment (FPI) debt inflows have reached $95.5 billion since FY99, accounting for 62% of cumulative equity inflows. This trend highlights the growing importance of India's debt market in attracting foreign capital.