1 week ago
FPIs Resume Indian Equity Buying on Earnings and Rupee Stability
Foreign investors bought ₹23,544 crore worth of Indian company shares in August.
They had also bought ₹20,200 crore in July.
This was a change after selling shares for four months in a row.
Better company results and a steadier rupee helped make India’s market look more attractive.
Investors also saw good growth possibilities in smaller and mid-sized companies.
They are buying some mid-cap shares even though those shares may be expensive.
However, foreign investors have still taken more money out of Indian shares than they have put in during 2026.
They bought some debt through one route but sold more through another route.
Investors will also watch oil prices and US-Iran tensions for possible effects on markets.
FPIs invested ₹23,544 crore in Indian equities during August, after investing ₹20,200 crore in July.
The buying followed four consecutive months of heavy selling, including ₹1.17 lakh crore withdrawn in March.
Analysts attributed the renewed inflows to improving Q1 earnings, rupee stability, broader-market prospects and reduced interest in the “chip trade.”
FPIs are selectively buying mid-cap stocks despite elevated valuations, rather than leading large banking or IT stocks.
FPIs remain net sellers in Indian equities in 2026, withdrawing around ₹2.3 lakh crore, while debt flows were mixed.
- Who
- Foreign Portfolio Investors (FPIs), with analysts V K Vijayakumar and Pabitro Mukherjee commenting on the flows.
- What
- FPIs invested ₹23,544 crore in Indian equities during August, while investing ₹852 crore in debt through the Fully Accessible Route and withdrawing ₹995 crore through the general route.
- Where
- Indian equity and debt markets.
- When
- The figures were reported on August 23, 2026, covering August so far.
- Why
- Improving quarterly earnings, rupee stability, broader-market growth prospects and reduced interest in the “chip trade” supported investor sentiment.
Key facts
- August equity inflow
- ₹23,544 crore invested by FPIs so far in August
- July equity inflow
- ₹20,200 crore invested by FPIs
- March equity outflow
- ₹1.17 lakh crore withdrawn by FPIs
- 2026 equity position
- Around ₹2.3 lakh crore withdrawn, leaving FPIs net sellers
- Debt inflow through FAR
- ₹852 crore invested
- Debt outflow through general route
- ₹995 crore withdrawn
- Preferred stocks
- Mid-cap stocks, despite elevated valuations, rather than leading large banking or IT stocks
Quotes
V K Vijayakumar
Chief investment strategist at Geojit Investments
“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.”
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