3 days ago
Foreign Investors Extend Indian Equity Buying Streak in August
Foreign investors bought ₹30,919 crore worth of Indian shares in August.
They had also bought ₹20,200 crore in July.
This was the first time in two months that they bought shares after selling for four months.
Better company earnings and steady economic activity helped encourage them.
A stable rupee and fewer geopolitical worries also made India more attractive.
However, these investors have still taken much more money out of Indian shares than they have put in during 2026.
Concerns about oil prices, wars, trade tensions and US interest rates remain.
Future investment may depend on inflation and economic growth figures.
Foreign portfolio investors invested ₹30,919 crore in Indian equities during August.
The inflow followed ₹20,200 crore invested in July, ending four months of heavy selling.
Despite the recent buying, FPIs remained net sellers in 2026, withdrawing ₹2.23 lakh crore so far.
Improving June-quarter earnings, resilient economic activity, stronger credit growth and a stable rupee supported investor confidence.
Crude prices, geopolitical tensions, US bond yields, inflation and economic data could influence future flows.
- Who
- Foreign portfolio investors (FPIs), with analysts from Geojit Investments, Morningstar Investment Research India, Vallum Capital and Bajaj Broking commenting on the flows.
- What
- FPIs invested ₹30,919 crore in Indian equities in August, extending their buying streak to two months; they also invested in parts of the debt market.
- Where
- Indian equity and debt markets.
- When
- August 2026; the report was published on August 30, 2026.
- Why
- Improving corporate earnings, resilient economic activity, stronger credit growth, a stable rupee, easing geopolitical concerns and expectations of softer US interest rates supported buying, although global and domestic risks remained.
Reasons for optimism
Reasons for caution
Possible trend reversal
Reasons for optimism
Two consecutive months of equity buying, improving earnings and resilient economic activity may indicate that foreign investors are regaining confidence in India.
Reasons for caution
FPIs remain net sellers in Indian equities for 2026 overall, and futures activity suggests lingering caution.
Global investment conditions
Reasons for optimism
Easing geopolitical concerns, expectations of softer US interest rates and capital rotation away from crowded AI and semiconductor trades created room for Indian allocations.
Reasons for caution
West Asian tensions, uncertain crude prices, elevated US bond yields and possible US-Canada trade tensions could keep investors cautious.
Future flows
Reasons for optimism
A stable rupee, stronger credit growth and better corporate earnings could support continued investment.
Reasons for caution
Investors are awaiting Brent crude movements, US-Iran developments, inflation data, the Federal Reserve's mid-September meeting and India's Q1 GDP growth data.
Key facts
- August equity inflow
- ₹30,919 crore
- July equity inflow
- ₹20,200 crore
- 2026 equity position
- Net outflow of ₹2.23 lakh crore so far
- March equity outflow
- ₹1.17 lakh crore
- Debt investment through FAR
- ₹627 crore
- Debt investment through VRR
- ₹289 crore
- Debt investment through general route
- ₹2,318 crore withdrawn
Quotes
Himanshu Srivastava
Principal and Manager Research at Morningstar Investment Research India
“Corporate earnings showed signs of improvement during the June quarter, helping ease concerns around the earnings slowdown that had weighed on foreign investor sentiment earlier. Resilient economic activity and strengthening credit growth also reinforced confidence in India's medium- to long-term growth prospects”
livemint.com
thehansindia.com
thehindubusinessline.com
“The important factors driving the FPI flows into India are the reversal of the chip trade, the stability in the rupee and, more importantly, the improving earnings growth in India”
livemint.com
thehansindia.com
thehindubusinessline.com
Sources
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