FII inflows into Indian equities hit two-year high of ₹29,631 cr in August
Foreign Institutional Investors (FIIs) recorded their highest monthly net inflow into Indian equities in nearly two years during August 2026. While equity investments surged, interest in debt securities and government bonds saw a significant decline.
Why it matters
This shift indicates strong global investor confidence in Indian corporate earnings and market stability, which is crucial for the country's capital market health.
Foreign Institutional Investors (FIIs) bought equities worth ₹29,631 crore in August 2026, marking their largest monthly net inflow in 23 months.
Foreign investors have now bought Indian stocks for two consecutive months for the first time this calendar year. In July 2026, FIIs invested ₹20,200 crore in Indian equities, reversing part of the ₹49,340 crore outflow recorded in June.
With the July and August inflows combined, FII investments in Indian equities stood at ₹49,831 crore, effectively offsetting the June outflow.
Mutual funds also remained net buyers during the month, investing ₹125 crore, compared with ₹61 crore in July 2026.
However, the strong momentum in debt markets witnessed over the previous two months failed to continue in August. After recording significant inflows of more than ₹58,000 crore in the preceding two months, FIIs turned sellers of General Limit debt securities, offloading ₹2,224 crore during the month.
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