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Foreign investors buy back ₹17,227 crore in Indian equities in July
July inflows followed prior outflows, and rising crude oil prices tied to West Asia pose a risk to how fast foreign buying can continue.
Foreign portfolio investors returned to Indian equities in July, investing a net ₹17,227 crore, according to NSDL data cited by LiveMint Markets up to 22 July 2026. The month marked a sharp turnaround after four straight months of selling, with outflows of ₹49,340 crore in June, ₹32,963 crore in May, ₹60,847 crore in April and ₹1.18 lakh crore in March.
LiveMint Markets reports that FPIs are still net sellers for the calendar year, with cumulative equity outflows of ₹2.57 lakh crore in 2026 so far. The article also points to a earlier shift to net buying in February, when FPIs invested ₹22,615 crore after withdrawing ₹35,962 crore in January.
Geojit Investments strategist Dr V K Vijayakumar said the improvement reflects a change in global investor positioning, as foreign investors have turned cautious on semiconductor-heavy markets such as South Korea and Taiwan. He also warned that a sharp rise in crude oil prices sparked by escalating conflict in West Asia is a key macroeconomic risk for India, potentially weighing on FPI inflows via concerns about inflation, the current account deficit and corporate profitability.
SBI Securities research head Sudeep Shah added that July flows show sector and asset-class rotation, with sovereign bonds attracting net foreign inflows of ₹10,668 crore in the first half of July. LiveMint Markets links the bond buying strength to changes that improve post-tax returns, including the removal of long-term capital gains tax and withholding tax on eligible foreign investments in government bonds.
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