Foreign Investors Turn Buyers in Indian Stocks as Confidence Returns
Improving foreign fund flows and stronger domestic economic indicators are encouraging foreign portfolio investors (FPIs) to increase their exposure to Indian equities.
Foreign portfolio investors (FPIs) have invested a net INR 23,544 crore in Indian equities so far in August, marking their second straight month of buying after heavy outflows from March to June. Improving corporate earnings, a stable rupee and attractive valuations of large-cap stocks have helped restore investor confidence. Despite the recent inflows, FPIs remain net sellers by more than INR 2.3 lakh crore in 2026. Expectations of U.S. rate cuts and lower crude oil prices could, however, support stronger foreign investment in the Indian market ahead.