Foreigner Portfolio investors (FPIs) have made a net investment of more than Rs 15,157 crore in Indian stocks so far in July after selling for 4 consecutive months. This trend has been witnessed due to improving domestic macroeconomic indicators, stability of the rupee and increasing risk appetite globally.
Foreign investors had sold Rs 1.17 lakh crore in March
According to Central Depository Services (India) Ltd (CDSL) data, foreign investors had previously sold net assets worth Rs 49,340 crore in June, Rs 32,963 crore in May, Rs 60,847 crore in April and Rs 1.17 lakh crore in March. Before this selling phase, in February, foreign investors had made a net investment of Rs 22,615 crore in the Indian stock market.
Total sales crossed Rs 2.60 lakh crore this year
Although, FPIs have made net investment in the Indian stock market in July, but till now in the year 2026, FPIs have withdrawn a total of Rs 2.60 lakh crore from Indian stocks. This figure is much higher than the withdrawal of Rs 1.66 lakh crore in the same period last year.
How did the foreigner’s mood change?
Himanshu Srivastava, Chief Manager (Research), Morningstar Investment Research India, said the return of investment in July is a result of rising risk appetite globally, reduced concerns over energy prices after geopolitical tensions eased earlier this month and increased confidence in India’s strong macroeconomic position.
Domestic economy and stability of rupee
VK of Geojit Investments Vijayakumar said the improvement in the domestic economy and stability of the rupee have played an important role in attracting foreign investors. He said that due to weakness in the semiconductor business and selling by FPIs in markets like South Korea, a part of the investment has come towards India.
How will be the mood of FPIs going forward?
However, Srivastava cautioned that while this strong return of investment in July is encouraging, the future trend of FPI investment will depend on global conditions and the strength of India’s domestic economic growth. Meanwhile, foreign investors also remain interested in the debt or bond market. In July, FPIs invested Rs 6,625 crore in debt securities under the full access route (FAR) and Rs 3,228 crore through the normal route.
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