Foreign portfolio investors (FPIs) have invested ₹30,918 crore in Indian equities during August 2026 up to August 29, remaining buyers in the domestic market for the second consecutive month.
Of the total investment, around ₹18,790 crore came through stock exchanges, while another ₹12,128 crore was invested through the primary market and other categories.
The continued return of overseas investors signals improving foreign investor sentiment towards Indian markets after periods of sustained selling earlier in the year.
According to market experts, several factors have supported the renewed FPI flows, including stability in the Indian rupee, improving corporate earnings growth and changes in global investment positioning.
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said improving earnings growth in India has emerged as one of the key reasons behind stronger foreign investment flows.
Another major trend has been the growing interest of foreign investors in mid-cap and small-cap stocks.
Growth and earnings momentum in these segments have remained stronger than in many large-cap companies, encouraging overseas investors to increase exposure to smaller and mid-sized businesses.
Domestic institutional investors have also continued to provide strong support to Indian equities. During Friday’s trading session, domestic institutions purchased shares worth approximately ₹5,184 crore, helping absorb foreign selling pressure seen during parts of the session.
Despite the improvement in investment flows, benchmark stock indices remained under pressure during the week.
The Nifty 50 declined around 0.31% during the week to close at 24,175.65, while the Sensex fell nearly 0.36% to 77,264.51, marking a third consecutive weekly decline.
Global interest-rate concerns, geopolitical uncertainty and volatility surrounding the newly introduced Closing Auction Session for futures and options stocks kept investors cautious.
However, broader mid-cap and small-cap indices showed greater resilience, supported by domestic liquidity and stock-specific buying.
The continuation of foreign investment for a second consecutive month will now be closely watched as investors assess corporate earnings, rupee movements, global monetary policy and geopolitical developments for the next direction in Indian equities.
source – IANS
Supreme News Network
