Home›Global Markets›Emerging Markets›Foreign investors return to India equities in July aft…

Foreign investors return to India equities in July after deep selling

FPIs bought a net ₹15,412 crore in July, after withdrawing ₹49,340 crore in June, while they remain net sellers of ₹2.59 trillion so far in 2026.

Reported · Written up by our desk · Emerging Markets

Foreign portfolio investors turned net buyers in July after a four-month selling streak, adding ₹15,412 crore to Indian equities, according to data cited by LiveMint Markets and based on National Securities Depository Ltd. figures. The July inflow followed net outflows of ₹49,340 crore in June, ₹32,963 crore in May, ₹60,847 crore in April and ₹1.17 trillion in March.

Even with the July reversal, FPIs have pulled out a net ₹2.59 trillion from Indian equities so far in 2026, far above the ₹1.66 trillion withdrawn during calendar year 2025. LiveMint Markets also noted that foreign investors had invested ₹22,615 crore in Indian equities in February before the selloff began.

Experts said the shift looks more like tactical repositioning than a structural return. LiveMint Markets reported that Ametra PMS co-founder Karan Aggarwal linked the pattern to FPIs building long positions in an Asian artificial intelligence trade while staying short on India, which helped explain a near-90% net short position on index options for about 18 months.

The article also highlighted that while FPIs were selling in secondary markets, they were buying in primary markets. LiveMint Markets said FPIs withdrew more than ₹2 trillion year to date from secondary markets but net invested nearly ₹33,000 crore in primary markets, and that continued buying could depend on crude staying contained, rupee stability, and Q1 FY27 earnings.

Latest closeWTI crude $86.80 ▲3.8%

More like this

Sources