FPIs Pour ₹16,621 Crore into Indian Equities in August Rebound

Foreign Portfolio Investors (FPIs) have reversed their trend of selling Indian equities, investing ₹16,621 crore in the first half of August. This comes after a ₹20,200-crore investment in July, marking a sharp turnaround from four consecutive months of heavy selling by FPIs.

The inflow is attributed to improving relative valuations, resilient corporate earnings, expectations of softer US interest rates, lower crude prices, and reduced currency volatility. Market experts point out that attractive valuations relative to other markets have contributed to the reversal.

FPIs had withdrawn ₹49,340 crore in June, ₹32,963 crore in May, ₹60,847 crore in April, and a massive ₹1.17 trillion in March. Despite recent buying, foreign investors remain net sellers in Indian equities in 2026, having withdrawn around ₹2.4 trillion so far.

FPI flows are likely to remain sensitive to global cues, particularly US Treasury yields, the dollar index, crude oil prices, and corporate earnings upgrades. Investors will closely track crude oil prices and developments around ongoing US-Iran geopolitical tensions in the coming week.