FPIs return to Indian equities with $2B net inflow, snapping four-month selling streak

Healthcare and metals led the sector rotation as foreign investors reversed a prolonged exit from Indian markets, signaling renewed confidence in domestic growth prospects.

By Handelsavisen Newsroom · Automated 2026-07-23 08:42 UTC · 1 min read

Foreign portfolio investors (FPIs) have returned to net buying in Indian equities, injecting approximately $2 billion (₹17,227 crore) into the market in July.

The inflow marks a decisive break from a four-month period of consecutive net selling, according to data from the National Securities Depository Limited (NSDL) through July 22, 2026.

The reversal in foreign capital flows highlights a shift in sentiment toward Indian assets after a prolonged period of outflows.

Healthcare and metals sectors emerged as the primary beneficiaries of the renewed interest, attracting significant foreign capital.

In contrast, the auto and capital goods sectors continued to face headwinds, struggling to attract similar levels of investment despite the broader market recovery.

This development follows a broader trend of foreign institutional investors returning to net buying in Indian equities, having previously ended a 12-month streak of consecutive net selling.