Foreign portfolio investors (FPIs) reverse a four-month selling streak and buy Indian equities in July, with net inflows of about ₹15,157 crore so far in the month (reported up to early July). The turnaround follows large net withdrawals from Indian equities in prior months, including ₹49,340 crore in June after outflows of ₹32,963 crore in May, ₹60,847 crore in April, and about ₹1.17 lakh crore in March. Despite the July improvement, FPIs remain net sellers for the year so far, withdrawing around ₹2.6–₹2.7 lakh crore from Indian equities in 2026, compared with lower outflows in the same period of 2025.

Multiple reports attribute the July buying to improving domestic macroeconomic indicators, a relatively stable rupee, and improved global risk sentiment. Some also point to relief from concerns linked to crude oil prices and global developments. In addition to equities, foreign investors continue investing in India’s debt market, with reports citing significant inflows into debt instruments during July, supported by changes that made Indian debt taxation more attractive. Analysts say the continuation of equity inflows depends on global conditions and the pace of India’s economic growth.