FPIs invest Rs 15,157 crore in July, reverse 4-month selling trend
Despite July rebound, foreign portfolio investors remain net sellers in Indian equities on a year-to-date basis
Foreign portfolio investors (FPIs) became net purchasers in July, buying more than Rs 15,157 crore so far this month after selling Indian stocks for four months in a row, according to data from Central Depository Services (India) Ltd (CDSL).
Following withdrawals of 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. There has been a turnaround. Foreign investors had invested Rs 22,615 crore in Indian stocks in February prior to the protracted selling trend.
FPIs continue to be net sellers for the year despite the July rebound, withdrawing around Rs 2.6 lakh crore from Indian stocks thus far in 2026—more than the Rs 1.66 lakh crore withdrawn at the same period last year.
Himanshu Srivastava, Principal Manager of Research at Morningstar Investment Research India, claims that the reversal in July is a result of increased confidence in India’s macroeconomic fundamentals, a decrease in concerns about energy prices after geopolitical tensions eased earlier this month, and an improvement in global risk appetite.
Improving domestic macroeconomic conditions and the stability of the currency have been crucial in drawing in international investment, according to VK Vijayakumar, Chief Investment Strategist at Geojit Investments.
He continued by saying that FPIs becoming sellers in economies like South Korea and difficulties in the semiconductor sector further diverted money to India.
Meanwhile, on July 8, the Securities and Exchange Board of India (SEBI) notified changes to the Foreign Portfolio Investors (FPI) regulations, replacing the US dollar-denominated payment mechanism with a rupee-denominated fee structure for foreign investors and foreign venture capital investors (FVCIs).
In order to give foreign investors and intermediaries sufficient time to adjust to the new system, the modifications will take effect after six months.
“In regulation 43B (2), the words and symbols ‘US $1000’ shall be substituted with the words and symbols ‘Rs 90,000 in eligible foreign exchange equivalent’,” as per the notification dated July 3.
