Foreign investors return with nearly $5 billion in Indian equities
Foreign investors are back in a big way, pumping nearly $5 billion into Indian equities during July and August 2026. This is a sharp turnaround after they sold more than $27 billion between March and June.
A significant portion of this fresh money went into block deals, QIPs, and OFS. The Indian market saw combined IPO, QIP, and OFS issuances worth more than ₹1.2 lakh crore to the market.
India 2nd among EMs $2.1B inflows
India was the second-largest recipient of foreign inflows among emerging markets in August, attracting $2.1 billion. Only Taiwan saw more.
Strong corporate earnings helped boost confidence, with Nifty500 companies posting a 13% jump in profits for the June quarter.
Meanwhile, domestic institutional investors also bought shares worth $5.4 billion in August, though their pace has slowed compared to earlier this year.