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Foreign investors return to buying Indian equities in July

FPIs bought Indian stocks worth ₹20,200 crore in July, while net inflows into India’s broader financial market totaled ₹40,031 crore for the month.

Reported · Written up by our desk · Emerging Markets

Foreign portfolio investors returned to buying Indian equities in July, purchasing stocks worth ₹20,200 crore, according to NSDL data cited by LiveMint Markets. The same data show net inflows into India’s broader financial market, including equities, debt, hybrid mutual funds, and AIFs, totaled ₹40,031 crore in July.

LiveMint Markets reported that the shift helped lift major Indian benchmarks, with the Sensex and the Nifty 50 gaining more than 2% each in July for the second consecutive month. Gains also extended to the Nifty Midcap 100, which rose nearly 2%, and the Nifty Smallcap 100, which climbed 2.5%.

Even with July’s rebound, the article notes that by July 31 the Nifty was down 7% and the 30-share index was down more than 8% so far in 2026. It also highlights that foreign investors have still been net sellers in equities for the year, with equity outflows of ₹2,54,072 crore and net equity outflows of ₹172,841 crore through July 31.

LiveMint Markets attributed the renewed buying to stabilizing macroeconomic conditions, healthy corporate earnings, and a steady RBI policy, alongside falling inflation. The story also points to the US Federal Reserve keeping interest rates unchanged, declining inflation, and rising concerns about lofty valuations in AI stocks, while citing views that sector tilts and shifts in regional flows are influencing FPI sentiment.

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