Foreign portfolio investors (FPIs) returned to decisive net buying in Indian financial markets during the first week of August, injecting ₹12,290 crore into the system.
The equity segment captured the vast majority of this capital, drawing net inflows of ₹12,921.14 crore over the five-session period, according to data reported by Hindu Businessline.
This surge in foreign capital marks a continuation of the trend that began in July, when FPIs ended a four-month period of net selling by pumping approximately $2 billion (₹17,227 crore) into Indian equities.
This surge in foreign capital marks a continuation of the trend that began in July, when FPIs ended a four-month period of net selling by pumping approximately $2 billion (₹17,227 crore) into Indian equities.
The shift in sentiment has provided a significant tailwind for domestic benchmarks, which have seen renewed buying interest from overseas funds.
The return of foreign liquidity is critical for market depth and liquidity in India’s equity markets, which have historically relied on FPI flows for significant volume.
The early August data suggests that the reversal in foreign sentiment is not a one-off event but a sustained re-engagement with Indian assets.