FPIs invest ₹16,621 crore in August; net outflows at ₹2.4 lakh crore

Foreign portfolio investors (FPIs) invested ₹16,621 crore in Indian equities in the first half of August, The Hindu Business Line reports. The inflow follows ₹20,200 crore in July, a sharp turnaround after four months of heavy selling that saw net outflows of over ₹2.4 lakh crore from March to June.

Despite the recent buying, FPIs have withdrawn a net ₹2.4 lakh crore from Indian equities in 2026 so far. The Hindu reports that India-focused long-only funds remain persistent sellers, with 65% of the inflows from 2023-24 now withdrawn. ETFs are cushioning the impact, led by US-domiciled funds, while Japan and Luxembourg funds have pulled out 50-60% of their capital.

Market experts attribute the reversal to attractive valuations, resilient earnings and expectations of US rate cuts, The Hindu Business Line says. FPI flows will remain sensitive to US Treasury yields, the dollar index and crude prices. Domestic investors continue to provide market support.