Now Reading: FPI inflows hit 23-month high as cyclicals lift markets
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FPI inflows hit 23-month high as cyclicals lift markets
Foreign portfolio investors pumped a net Rs 23,544 crore into Indian equities in August up to August 21, the highest monthly inflow since September 2024 and the second consecutive month of buying,…
Foreign portfolio investors pumped a net Rs 23,544 crore into Indian equities in August up to August 21, the highest monthly inflow since September 2024 and the second consecutive month of buying, according to NSDL data reported by Livemint. The Sensex ended the week down 0.6% and the Nifty fell 0.5%, dragged by IT, telecom and consumer stocks, while realty, metals and private banks gained. The BSE Realty Index rose 1.58% for the week, while the BSE IT Index slumped 2.61%.
Jio BlackRock Asset Management said in its August outlook that FII inflows returned in July and India's 12-month forward P/E has returned to its 10-year average of about 20 times, signalling improving sentiment. However, it cautioned that consumer confidence has fallen to its lowest since September 2023, and a sustained reversal in foreign flows is yet to be confirmed. Livemint reports that year-to-date, FPIs remain net sellers of Rs 2.30 trillion, exceeding last year's Rs 1.66 trillion outflow.
Analysts quoted by Livemint described the August inflow as tactical rather than structural, with a durable rebound requiring two to three more months of consistent buying. Commodity-linked stocks, realty and rate-sensitive financials are expected to retain momentum, while IT and FMCG face headwinds from US demand uncertainty and elevated costs.
Indian Opinion Analysis
Both Livemint and The Hindu Business Line report the return of foreign inflows factually, with no discernible slant. Livemint leads with the weekly sector performance and analyst views, while Business Line leads with the Jio BlackRock report's macro assessment. Neither outlet overstates the recovery: both note that year-to-date outflows remain heavy and that a sustained reversal is unconfirmed. The measured reading is that August's inflow is a tactical reprieve, not a trend shift, and markets are still watching whether valuations near long-term averages can draw consistent foreign buying through the rest of 2026.
Coverage: 2 sources, 2 neutral
Sources (2): livemint.com (neutral report), thehindubusinessline.com (neutral report)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
