Foreign portfolio investors (FPIs) reverse a four-month selling streak and become net buyers in Indian equities in July, with most reports citing an equity inflow of around ₹20,200 crore for the month. The turnaround follows substantial net withdrawals earlier in 2026, including large outflows in March and June. Some outlets also note that the slowdown in selling is gradual, with overseas outflows easing sharply toward the end of July.

Multiple factors are cited for the renewed interest: relatively stable domestic conditions, valuations that some investors view as more reasonable (especially in large caps), and improving corporate earnings prospects. Several reports add that a more favourable global environment—such as reduced currency pressure and expectations around US interest rates—supports emerging-market sentiment. In equity-sector terms, one outlet reports FPIs shifting into information technology, marking the first net buying in that sector in 2026, while other sectors see mixed flows. Analysts also flag ongoing watchpoints such as crude oil prices, US–Iran geopolitical developments, and upcoming earnings and policy events.