Foreign portfolio investors (FPIs) are turning more cautious at times, but they also show a clear willingness to return to Indian markets. Multiple outlets report that after four months of selling, FPIs buy Indian equities in July, with inflows around ₹20,200 crore, helping reverse part of June’s large outflow. They extend the turnaround in August as well, with net buying reported at roughly ₹30,918–₹30,919 crore, and some accounts describing August as the strongest inflow in nearly two years.

The picture for 2026 overall remains mixed. One outlet highlights that FPIs withdraw about ₹20,974 crore from equities in September amid global uncertainty, after earlier returns in July and August. Other reports frame the July–August shift as driven by more stable domestic conditions, reasonable valuations in large caps, improving corporate earnings, and a more favourable global backdrop, including expectations around US interest rates and currency stability. Several sources also note sectoral differences in buying and selling, including renewed interest in IT and sustained domestic institutional support absorbing foreign volatility.

While equities see shifting flows, at least one outlet adds that FPIs also participate in India’s debt markets, though momentum can vary by month. Across coverage, crude oil prices, US–Iran geopolitical risks, and upcoming policy/earnings catalysts are repeatedly cited as factors that could affect near-term direction.