New Delhi, 23 August (H.S.):

After remaining net buyers through July and the first two weeks of August, foreign portfolio investors (FPIs) continued their buying activity into the third week of the month. During the first, second and third weeks of August, FPIs invested more than Rs 23,000 crore in the Indian equity market. With global markets showing signs of recovery and the Indian stock market maintaining its underlying strength, market observers believe that barring any major reversal, FPI buying could continue through the fourth and final week of August.

Foreign portfolio investors remained net sellers for most of 2026. Apart from February and July, FPIs continued to withdraw money from the domestic equity market through selling in every other month of the year. The selling was particularly aggressive in March. Before July, FPIs had also remained net sellers for three consecutive months — June, May and April.

However, in July, foreign portfolio investors turned net buyers, with purchases exceeding their selling activity. During the month, FPIs made a net investment of Rs 20,199 crore in the Indian stock market.

Before the buying recorded in July, February was the only other month in 2026 when foreign portfolio investors emerged as net buyers. FPIs invested a total of Rs 22,615 crore in the Indian equity market in February. According to data from Central Depository Services (India) Limited (CDSL), foreign portfolio investors had withdrawn Rs 49,340 crore from the Indian stock market in June, the month preceding July.

Looking at FPI buying and selling activity since the beginning of 2026, foreign portfolio investors sold equities worth Rs 35,962 crore in the domestic market in January. In February, FPIs shifted from selling to buying and invested Rs 22,615 crore in Indian equities.

The trend reversed again in March, when foreign portfolio investors undertook broad-based selling in the stock market and withdrew a record Rs 1.17 lakh crore. Selling continued in April, with FPIs offloading shares worth Rs 60,847 crore. In May, they sold equities worth Rs 32,963 crore. In June, FPIs withdrew another Rs 49,340 crore from the domestic equity market.

The trend changed in July, when foreign portfolio investors made a net investment of Rs 20,199 crore. This was followed by investments of Rs 23,544 crore in the domestic equity market during the first three weeks of August.

The data shows that foreign portfolio investors remained predominantly net sellers in the Indian equity market for most of the period from January through August 2026. Despite the buying recorded in February, July and the first three weeks of August, FPIs have made a cumulative net withdrawal of Rs 2,29,354 crore from the domestic equity market so far this year after accounting for their overall buying and selling activity.

The continuation of FPI buying in August following the positive trend seen in July has provided some relief and raised expectations that overall buying interest in the market could remain firm in the coming days.

TNV Financial Services CEO Tarkeshwar Nath Vaishnav said that improving domestic economic indicators, relative stability in the rupee, comparatively softer crude oil prices and a growing willingness to take risks even amid uncertainty have increased foreign investors’ interest in Indian markets. He added that improving macroeconomic conditions had also enhanced the attractiveness of the Indian equity market among overseas investors.

In 2025, foreign portfolio investors had remained net sellers and withdrew a total of Rs 1.66 lakh crore from the domestic equity market. During the first six months of 2026, FPIs remained net sellers in five months, with February being the only exception. By the end of June, foreign investors had cumulatively withdrawn Rs 2,73,497 crore from the domestic equity market after accounting for their buying and selling activity.

However, FPIs turned net buyers in July and continued their buying spree during the first three weeks of August, helping moderate the extent of their cumulative withdrawals from the Indian equity market.

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Hindusthan Samachar / Jun Sarkar