FPIs inject ₹23,544 crore into Indian equities as earnings improve

Foreign Portfolio Investors (FPIs) have channelled ₹23,544 crore into Indian equities during August, signalling a marked turnaround in market sentiment. The substantial inflow follows ₹20,200 crore invested in July, ending four consecutive months of heavy capital withdrawals and indicating restored confidence in Indian asset markets.

The revival has been underpinned by several positive factors. Strong quarterly earnings results, particularly from the first quarter of the financial year, have bolstered investor appetite for Indian equities. Concurrently, stability in the rupee exchange rate and improved market prospects have encouraged foreign investors to re-engage with the Indian market after an extended period of caution.

However, the recent buying activity has not fully reversed the year's overall outflow trend. Despite August's inflows, FPIs remain net sellers in Indian equities in 2026, having withdrawn approximately ₹2.3 lakh crore since the start of the year. This outflow exceeds the ₹1.66 lakh crore withdrawal recorded during the entire 2025 calendar year, reflecting the severity of the earlier sell-off.

The April-June period had witnessed particularly sharp capital exits, with FPIs withdrawing ₹60,847 crore in April, ₹32,963 crore in May and ₹49,340 crore in June. June's withdrawal of ₹49,340 crore represented one of the steepest monthly outflows. Prior to this selling streak, FPIs had invested ₹22,615 crore in February, according to data from the Central Depository Services Limited (CDSL).