Indian FPI inflows reach $3.2 billion in August
Foreign investors returned to Indian equities with record August inflows of $3.2 billion, driven by strong GDP growth and stable currency conditions.
Foreign portfolio investors (FPIs) poured over $3.2 billion into Indian stocks during August, marking the strongest monthly inflow since September 2024. This significant capital return occurred even as the Nifty and Sensex indices fell by more than 1% during the month. The influx continued with foreign money flowing into Indian equities in Rs 2,374 crore within the first four days of September. National Securities Depository (NSDL) data confirmed that overseas investors remained net buyers across sectors for a second consecutive fortnee, with ten different industries attracting foreign capital between August 16 and August 31. Leading sectors included Consumer Services, Financials, and Healthcare. Analyst HSBC estimates that up to $25 billion could enter India if global funds restore neutral allocations. Market resilience was supported by the Q1 FY27 GDP growth rate of 7.8%, better-than-expected earnings figures, and a stabilized rupee.
