New Delhi, 16 August (H.S.): Foreign portfolio investors (FPIs) continued their buying spree in the Indian equity market for the second consecutive week, investing more than ₹16,000 crore during the first two weeks of August. After remaining net buyers in July and the first week of August, foreign investors maintained their positive stance during the second week as well.

With global markets showing signs of recovery and Indian equities continuing to demonstrate resilience, market observers believe FPI buying could remain strong through the third and fourth weeks of August, provided there is no major adverse development.

FPIs have remained predominantly net sellers in the Indian stock market for most of 2026. Apart from February and July, foreign investors withdrew money from domestic equities in almost every other month. The most aggressive selling was recorded in March, while FPI outflows also remained substantial in April, May and June.

In July, however, foreign investors reversed the trend and emerged as net buyers. According to data from the Central Depository Services (India) Limited (CDSL), FPIs made a net investment of ₹20,199 crore in the Indian equity market during the month.

Before July, February was the only month in 2026 when FPIs had remained net buyers. During February, they invested ₹22,615 crore in Indian equities. In contrast, FPIs withdrew ₹49,340 crore from the domestic equity market in June, immediately preceding the turnaround witnessed in July.

The year began with heavy foreign selling. In January, FPIs sold equities worth ₹35,962 crore. Their stance changed in February, when they invested ₹22,615 crore in the market.

The selling pressure returned sharply in March, with FPIs withdrawing a record ₹1.17 lakh crore from Indian equities. The selling continued in April, when foreign investors offloaded shares worth ₹60,847 crore. In May, they sold equities worth ₹32,963 crore, followed by another ₹49,340 crore of outflows in June.

The trend changed in July, when FPIs recorded a net investment of ₹20,199 crore. During the first two weeks of August, they invested another ₹16,621 crore in the domestic equity market.

The data indicate that despite the recent improvement in FPI flows, foreign investors have remained net sellers for much of 2026. From January through the second week of August, their cumulative buying and selling activity has resulted in a net outflow of ₹2,36,677 crore from the Indian equity market.

The continued buying in July and August, however, has provided some relief to the domestic market and raised expectations that foreign participation could remain supportive in the coming weeks.

Anil Bhansali, Executive Director at Finrex Treasury Advisors LLP, attributed the improved foreign investor sentiment towards Indian equities to stronger domestic economic indicators, relative stability in the rupee, softer crude oil prices and a growing willingness among investors to take risks even amid global uncertainties.

He also said that improving macroeconomic conditions have enhanced the attractiveness of the Indian equity market for overseas investors.

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Hindusthan Samachar / Jun Sarkar