FPIs Invest ₹23,544 Cr In Indian equities In Aug On Earnings Revival, Rupee Stability

Foreign Portfolio Investors (FPIs) have accelerated buying in Indian equities this month, infusing ₹23,544 crore so far in August as improving quarterly earnings, a stable rupee and better market prospects lift sentiment.

The inflow comes after FPIs invested ₹20,200 crore in July, marking a sharp turnaround from four consecutive months of heavy selling and signalling renewed confidence in Indian equities.

FPIs had withdrawn ₹49,340 crore in June, ₹32,963 crore in May, ₹60,847 crore in April and a massive ₹1.17 lakh crore in March. Prior to this selling streak, they had invested ₹22,615 crore in February, according to CDSL data.

Despite the recent buying, foreign investors have remained net sellers in Indian equities in 2026, withdrawing around ₹2.3 lakh crore so far -- exceeding the ₹1.66 lakh crore outflow registered during the entire 2025.

"The factors that are driving the FPIs back to the Indian market are: earnings growth revival as reflected in Q1 results, FPI withdrawal from the 'chip trade', rupee stability and the impressive growth prospects of companies in the broader market," VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said.

FPIs are not buying attractively valued leading large banking or IT stocks; instead they are selectively buying mid-caps despite elevated valuations, he added.

In the coming week, investors will closely track crude oil price movements and developments in the ongoing US-Iran geopolitical tensions for further direction in the market, Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking, said.

Foreign investor interest has also extended to the debt market. They invested ₹852 crore in debt through the Fully Accessible Route (FAR), while they pulled out ₹995 crore through the general route during the period under review.