FPIs reverse four-month selling trend with ₹20,200 crore inflow in July
Foreign Portfolio Investors (FPIs) returned to the Indian equity market in July with a net inflow of ₹20,200 crore, ending a four-month selling streak. Experts attribute this shift to stable domestic market conditions, attractive large-cap valuations, and improved corporate earnings.
Why it matters
The return of foreign capital signals renewed investor confidence in the Indian economy, which is vital for market stability and liquidity.
After four straight months of selling, foreign investors turned net buyers of Indian equities in July, pumping in ₹20,200 crore, aided by attractive valuations, improving corporate earnings, and easing global headwinds.
The latest inflow marks a sharp reversal from the preceding months when Foreign Portfolio Investors (FPIs) withdrew ₹49,340 crore in June, ₹32,963 crore in May, ₹60,847 crore in April, and a massive ₹1.17 lakh crore in March, according to data from the Central Depository Services (India) Ltd (CDSL).
Prior to the four-month selling spree, FPIs had invested ₹22,615 crore in Indian equities in February.
Despite the turnaround in July, foreign investors have pulled out a net ₹2.54 lakh crore from Indian equities so far in 2026, way more than the ₹1.66 lakh crore withdrawn during the whole of 2025.
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