FPIs Invest ₹23,544 Crore in Indian Equities in August as Foreign Buying Momentum Strengthens

Foreign Portfolio Investors (FPIs) have continued their return to Indian equities in August 2026, investing a net ₹23,544 crore so far during the month as stronger corporate earnings, resilient domestic fundamentals and improving market sentiment encourage renewed overseas investment.

According to the latest depository data, ₹14,118 crore of the August investment came through purchases on stock exchanges, while another ₹9,426 crore entered through the primary market. The sustained buying follows a net FPI equity inflow of about ₹20,200 crore in July, marking a significant reversal after four consecutive months of foreign investor withdrawals.

Foreign investors had withdrawn ₹49,340 crore in June, ₹32,963 crore in May, ₹60,847 crore in April and around ₹1.17 lakh crore in March. The return of inflows in July and August therefore represents a notable improvement in overseas investor appetite for Indian stocks, although FPIs remain net sellers for 2026 as a whole.

The recent improvement has been supported by better quarterly corporate earnings and confidence in India’s domestic economic fundamentals. A relatively stable rupee and a broader shift of global liquidity towards emerging markets have also strengthened sentiment, particularly as investors reassess high valuations in some global technology and artificial-intelligence-related stocks.

Foreign investment trends in the debt market, however, have remained mixed. FPIs withdrew ₹995 crore through the General Limit route and another ₹83 crore through the Voluntary Retention Route during August, while the Fully Accessible Route attracted inflows of ₹852 crore.

The renewed equity inflows indicate that foreign investors are beginning to rebuild exposure to Indian markets after several months of heavy selling, with corporate earnings, currency stability and global capital flows likely to determine whether the turnaround continues in the coming months.