NEW DELHI: Foreign portfolio investors (FPIs) sustained their buying momentum in Indian equities, investing Rs 12,921 crore in the first week of Aug, driven by improving macroeconomic conditions, expectations of US rate cuts, lower crude oil prices and a stable rupee. The inflow follows a Rs 20,200-crore investment in July, marking a sharp turnaround after four consecutive months of heavy selling.FPIs had withdrawn Rs 49,340 crore in June, Rs 32,963 crore in May, Rs 60,847 crore in April and a massive Rs 1.2 lakh crore in March. Prior to this selling streak, they had invested Rs 22,615 crore in Feb, according to CDSL data.
Despite the recent buying spree, foreign investors have remained net sellers in Indian equities in 2026, withdrawing Rs 2.4 lakh crore so far, already exceeding the Rs 1.7 lakh crore outflow recorded during the entire 2025.Market experts said the recent inflows reflect improving investor sentiment, supported by expectations of US rate cuts, softer crude oil prices and a stable rupee.The RBI’s improved growth and inflation outlook has further strengthened confidence, while relatively low foreign ownership of Indian equities leaves room for fresh allocations, said Vedant Gupte, co-founder and CEO of investment platform Trackk.Importantly, a large share of the recent buying has come through the secondary market, signalling stronger interest in listed Indian companies rather than merely IPO allocations, Gupte added.