FPIs turn buyers for second month, invest ₹30,919 crore in August

Subscribed with another email? Logout and Login with that one. Published - August 30, 2026 09:41 pm IST - New Delhi Image used for representational purposes only. | Photo Credit: Getty Images/iStockphoto Foreign portfolio investors (FPIs) infused ₹30,919 crore in Indian equities in August, extending their buying streak to a second straight month, amid improvingc, resilient economic activity, stable rupee and easing geopolitical concerns.

The inflow follows ₹20,200 crore invested in July, marking a sharp turnaround after four consecutive months of heavy selling. FPIs had withdrawn ₹49,340 crore in June, ₹32,963 crore in May, ₹60,847 crore in April, and a massive ₹1.17 lakh crore in March.

Prior to the selling streak, they had invested ₹22,615 crore in February, according to Central Depository Services (India) Ltd. (CDSL) data. The two straight months of buying, following the worst six-month stretch in years, offer the first indication of a possible trend reversal.

However, foreign investors remain net sellers in Indian equities in 2026, with withdrawals of ₹2.23 lakh crore so far. This is higher than the ₹1.66 lakh crore outflow recorded during the entire 2025. "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," V.K.

Vijayakumar, chief investment strategist, Geojit Investments, said. The continuation of foreign buying in August was supported by improving domestic fundamentals as well as a relatively favourable global backdrop. "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," Himanshu Srivastava, Principal, manager research, Morningstar Investment Research India, said.

Global factors also turned relatively supportive during parts of the month. Easing geopolitical concerns aided risk sentiment, while expectations of softer U.S. interest rates and a rotation of global capital away from the crowded AI and semiconductor trade in markets such as Korea and Taiwan created room for incremental allocations towards India, he added.

However, tensions in West Asia and uncertainty over crude oil prices continued to remain an overhang. "Cash flows suggest returning conviction; futures suggest lingering caution. The trend may be turning, with post-AI and war-related worries receding," Manish Bhandari, CEO and portfolio manager, Vallum Capital, said.