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Back to 2026-08-09📊 Economy

Foreign Money Floods India: Is the Selling Over?

9 Aug8 min read· 📷 Ryutaro Tsukata

Foreign Portfolio Investors (s) injected ₹12,921 crore into Indian equities during the first week of August 2026, extending a buying trend that began in July. This marks a significant turnaround after months of outflows.

₹2.41 Lakh Cr

FPI Outflow (Year-to-Date 2026)

Full Year 2025: ₹1.66 Lakh Cr₹2.41 Lakh Cr

📊 One chart explains it

FPI Net Equity Flows (Monthly)

Mar 26
-1,17,000 ₹ Crore
Apr 26
-60,847 ₹ Crore
May 26
-32,963 ₹ Crore
Jun 26
-49,340 ₹ Crore
Jul 26
20,200 ₹ Crore
Aug 26 (1W)
12,921 ₹ Crore

Takeaway: After several months of significant outflows, FPIs have shown a clear return to buying in July and the first week of August 2026.

⏳ Time Machine

How today’s news fits into the bigger picture

  1. 2013

    'Taper Tantrum' Triggers FPI Exodus

    In May 2013, the US Federal Reserve hinted at reducing its bond-buying program, leading to a massive exodus from emerging markets like India, causing the rupee to plunge and benchmark indices to fall by over 10% in a few months.

  2. 2020

    COVID-19 Panic Selling

    March 2020 saw a sharp sell-off as the COVID-19 pandemic hit global markets. FPIs pulled out over $8 billion from Indian equities, fearing a global economic collapse, but later returned as liquidity measures were introduced.

  3. 2025

    Full Year FPI Outflow

    Foreign Portfolio Investors withdrew a total of ₹1.66 lakh crore from Indian equities throughout 2025, driven by global tightening cycles and inflation concerns, making it a challenging year for foreign capital attraction.

  4. March 2026

    Massive FPI Outflow Amid Geopolitical Tensions

    s recorded a significant outflow of ₹1.17 lakh crore from Indian equities in March 2026, primarily due to escalating geopolitical tensions and a broader global 'risk-off' sentiment.

  5. July 2026

    FPIs Turn Net Buyers After Months

    After four consecutive months of selling, s became net buyers in July 2026, injecting ₹20,200 crore into Indian equities. This marked the first positive inflow after a prolonged period of withdrawals, signaling a potential shift in sentiment.

  6. Today

    Foreign Portfolio Investors injected ₹12,921 crore into Indian equities in the first week of August.

  7. What happens next?

    Market analysts will closely watch FPI flows throughout August and the coming months to assess if this positive trend is sustained amidst global economic factors.

Foreign Portfolio Investors (FPIs) poured ₹12,921 crore into Indian stock markets in the first week of August 2026. This positive trend follows a strong ₹20,200 crore inflow in July, indicating a potential reversal after four consecutive months of selling. The renewed interest is driven by improving macroeconomic conditions in India, expectations of US interest rate cuts, stable crude oil prices, and a firm rupee. Despite these recent inflows, FPIs remain net sellers year-to-date in 2026, having withdrawn ₹2.41 lakh crore, which exceeds the total outflow from 2025.

💭 If you're wondering…

FPI (Foreign Portfolio Investment) involves investing in a country's stocks, bonds, or other financial assets, typically for short-term gains, without gaining controlling ownership. FDI (Foreign Direct Investment) involves establishing or acquiring a lasting interest in an enterprise in a foreign economy, usually through direct ownership or control, for long-term strategic reasons.

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