FPIs invest over ₹23,500cr in Indian equities this August
What's the story
Foreign portfolio investors (FPIs) have made a major investment in Indian equities this month, pumping in ₹23,544 crore so far. The surge comes on the back of improving quarterly earnings, rupee stability, and improved market outlook. This is a stark contrast to the trend seen earlier this year when FPIs had pulled out over ₹2.60 lakh crore from Indian equities between March and June.
Investment trends
Significant rebound in July
In July, FPIs had invested ₹20,200 crore in Indian equities, a major shift from the four-month-long selling spree.
The trend of withdrawal started with a massive outflow of ₹1.17 lakh crore in March and continued with further withdrawals in April (₹60,847 crore), May (₹32,963 crore), and June (₹49,340 crore).
Before this period of selling, FPIs had invested ₹22,615 crore in February.
Market dynamics
FPIs still net sellers this year
Despite the recent surge in investments, FPIs have continued to be net sellers in Indian equities this year.
They have withdrawn some ₹2.3 lakh crore so far, surpassing the ₹1.66 lakh crore outflow recorded for the entire year of 2025.
This shows a complex picture of foreign investment trends and their impact on India's stock market performance.
Market factors
Factors driving FPI interest in India
V K Vijayakumar, Chief Investment Strategist at Geojit Investments, said the return of FPIs to the Indian market is driven by several factors.
These include a revival in earnings growth as seen in Q1 results, FPI withdrawal from 'chip trade,' rupee stability and strong growth prospects of companies in the broader market.
He also noted that FPIs are selectively buying mid-caps despite high valuations instead of large banking or IT stocks.