FPI invested ₹12,921 crore in the first week of August:₹20,200 crore came into the Indian market in July

Foreign Portfolio Investors (FPIs) have made a heavy investment of ₹12,921 crore in the Indian stock market in the first week of August. Foreign investors’ buying continues due to improving conditions of the Indian economy, expectations of interest rate cuts in America, falling crude oil prices, and a stable rupee. After the investment of ₹20,200 crore in July, positive fund flow is being seen in the Indian market for the second consecutive month. Trend changed after 4 months of continuous selling After record selling of ₹49,340 crore in June, ₹32,963 crore in May, ₹60,847 crore in April, and ₹1.17 lakh crore in March, the market trend has changed since July. According to CDSL data, before the continuous four months of selling from March to June, FPIs had invested ₹22,615 crore in February. After this, an inflow of ₹20,200 crore was recorded in July, which has led to a recovery in the Indian stock market. ₹2.41 lakh crore withdrawn so far in 2026 Despite recent purchases, foreign investors remain net sellers in Indian equity overall in 2026 so far. FPIs have withdrawn ₹2.41 lakh crore from the Indian stock market this year till now. This figure has already exceeded the total selling of ₹1.66 lakh crore that occurred throughout the year 2025. Interest in Secondary Market and Listed Companies Increases Vedant Gupte, Co-Founder and CEO of investment platform Trackk, explained that the recent investment is a result of improving market sentiment. Expectations of rate cuts in America, falling crude oil prices, and a stable rupee have strengthened investor confidence. Vedant Gupte said that the better outlook given by RBI regarding growth and inflation has increased investor confidence. Foreign shareholding in Indian stocks is currently at lower levels, which leaves considerable scope for new funds. Additionally, a major portion of recent purchases is coming from the secondary market rather than just IPOs, which reflects foreign investors’ deep interest in listed companies. Sentiment Improved as Geopolitical Tensions Eased Pavitra Mukherjee, Deputy Vice President (Research) at Bajaj Broking, believes that the easing of geopolitical tensions is a major reason behind the continuous buying by FIIs and DIIs. The reduction in tensions has turned global investor sentiment positive, which has provided strong support to the Indian stock market. Auto-Healthcare Sectors Become Top Choice V K Vijayakumar, Chief Investment Strategist at Geojit Investments, stated that a distinct trend is being observed in FPI buying. Foreign investors are showing greater confidence in sectors like automobiles, consumer durables, and healthcare, and are rapidly increasing their allocation in these sectors. Foreign Investors Also Investing in Debt Market Along with the stock market, foreign investors’ interest in the Indian debt market also continues to remain strong. During the review period, FPIs invested ₹622 crore in the Indian debt market through the general route. What is Foreign Portfolio Investment? Foreign investors or institutions that invest money in a country’s stock market, mutual funds, or debt market for financial gains. They do not take direct management or operational control in companies. What is Secondary Market? The financial market where buying and selling of previously listed shares takes place between investors (such as BSE or NSE). In this, money does not go directly to the company but goes to the selling investor.