Foreign portfolio investors (FPIs) became net buyers in Indian equities in July, investing Rs 20,200 crore after four months of outflows. Attractive valuations, improving corporate earnings, and a better global investment environment, including stability in the rupee and large-cap stocks, drove the comeback.
Foreign investors have invested over $1 billion in Indian equities in the past week, signaling a bullish trend. Goldman Sachs and Citigroup project further inflows due to a stable rupee and improved earnings expectations, boosting the NSE Nifty 50 index.
Foreign portfolio investors have withdrawn over Rs 2 lakh crore from Indian equities in 2026, with May seeing further outflows of Rs 14,231 crore. Persistent global macroeconomic uncertainties, including inflation and interest rate concerns, are driving this trend, making developed market debt more attractive. Despite overall selling, some selective interest remains in specific sectors and growth-oriented mid and small-cap stocks.
