Foreign Investors Buy ₹480 Cr Worth Of Equities After Two-day Selling

Foreign institutional investors returned as net buyers in Indian equities on Friday, purchasing shares worth ₹480.24 crore, while domestic institutional investors (DIIs) also remained net buyers with investments of ₹235.56 crore, according to provisional exchange data.

During the session, DIIs bought equities worth ₹15,679.58 crore and sold shares worth ₹15,444.02 crore, resulting in a net inflow of ₹235.56 crore.

FIIs purchased shares worth ₹12,941.31 crore and sold equities worth ₹12,461.07 crore, leading to a net inflow of ₹480.24 crore. The buying marked a return to positive territory after foreign investors remained net sellers for the previous two trading sessions.

FIIs Continue August Buying Trend

Despite intermittent selling in recent sessions, foreign investors have remained net buyers so far in August. According to V K Vijayakumar, Chief Investment Strategist at Geojit Investments, FPIs have invested ₹12,920 crore in Indian equities through August 7, including ₹8,195 crore through exchanges and ₹4,125 crore under the "primary market and others" category.

He added that FPIs have also continued investing in the debt market through the Debt General Limit route.

Vijayakumar said foreign investors are showing a preference for sectors such as automobiles, consumer durables and healthcare, where June-quarter earnings have remained strong. He also noted continued FPI interest in mid- and small-cap growth stocks across sectors.

According to him, improving prospects for India's GDP growth and corporate earnings are likely to support continued foreign inflows, although elevated US bond yields remain a key risk. The benchmark 10-year US Treasury yield, currently around 4.67%, could continue to attract capital into safer US debt markets, potentially limiting the pace of FII inflows into emerging markets.

DIIs Continue To Offset Foreign Outflows

Despite recent buying, FIIs remain net sellers on a year-to-date basis, having withdrawn around ₹3.39 lakh crore from Indian equities so far in 2026.

Domestic institutional investors, however, have continued to provide strong support to the market, investing nearly ₹4.98 lakh crore during the same period and helping offset foreign outflows.

Indian benchmark indices ended lower on Friday as weak global cues triggered profit booking after the recent rally.

The Nifty 50 declined around 0.3% to close at 24,570, while the broader market remained relatively resilient. The Nifty Midcap 100 gained around 0.2%, while the Nifty Smallcap 100 ended largely flat.