Our Bureau
Mumbai
Foreign Portfolio Investors (FPIs) have returned as net buyers in Indian equities this July, investing ₹15,157 crore and ending a four-month streak of sustained selling, signalling renewed confidence in the country’s economic fundamentals and market outlook.
The turnaround follows significant net outflows over the previous four months, including withdrawals of ₹1.17 lakh crore in March, ₹60,847 crore in April, ₹32,963 crore in May and ₹49,340 crore in June. Market experts attribute the reversal to improving domestic macroeconomic indicators, a stable rupee, easing global risk sentiment and more attractive valuations in Indian equities.
Analysts said foreign investors have also shifted capital towards India amid weakness in global semiconductor-related trades and reduced allocations to some other emerging markets. The country’s resilient economic growth, healthy corporate earnings expectations and policy stability have further strengthened investor sentiment. Experts believe the correction witnessed in recent months has made quality Indian companies more appealing to overseas investors.
The debt market has also witnessed healthy foreign participation. During July, FPIs invested ₹6,625 crore through the Fully Accessible Route (FAR) and another ₹3,228 crore through the general route, aided by recent taxation reforms and favourable policy measures aimed at attracting overseas capital.
While the July inflows mark a notable improvement in foreign investor sentiment, market participants caution that the sustainability of the trend will depend on global economic developments, geopolitical stability and the continued strength of India’s growth story.
