FPI Inflows Rise to ₹30,919 Crore in August as Foreign Buying Returns

Foreign portfolio investors came back to the Indian equity market in August, buying shares worth ₹30,919 crore. They had also been buyers in July, when their investment stood at ₹20,200 crore. 

This is the first back-to-back monthly buying after four months of heavy selling. The monthly numbers, however, hide some selling towards the end of August. 

Buying Slows Towards Month-End 

FPIs sold ₹2,060 crore during the latest week, their second straight week of net selling. 

Between July 28 and August 28, they still ended up with net purchases of ₹8,092 crore. Most of the buying came in the first three weeks, before foreign investors turned sellers in the final two weeks. 

Domestic Funds Keep the Market Supported 

Domestic institutional investors continued to buy through the period. DIIs picked up ₹19,309 crore of equities during the latest week. 

Their buying between July 28 and August 28 was much higher at ₹56,737 crore. Unlike FPIs, DIIs remained net buyers throughout the period, helping take some of the pressure off the market. 

The bigger 2026 picture is still different. Foreign investors have withdrawn ₹2.23 lakh crore from Indian equities this year, already more than the ₹1.66 lakh crore taken out during the whole of 2025. 

Foreign Money Moves Towards Smaller Stocks 

V K Vijayakumar, Chief Investment Strategist at Geojit Investments, said the rupee, improving earnings and the reversal of the chip trade could have a bearing on future FPI flows. 

He also pointed to the changing preference within the Indian market. Foreign investors have been showing more interest in mid- and small-cap stocks, where Vijayakumar sees stronger growth and earnings momentum than in large-caps. 

Nifty Ends Another Week Lower 

The Nifty did not get much help from the monthly FPI numbers. It fell for the third week in a row, ending at 24,175, down 0.3%. 

The index touched 24,378 during the week before dropping to 24,076. Higher crude prices and geopolitical concerns kept sentiment under pressure. 

Key Levels to Watch 

Hariselvan Radhakrishnan of HST Wealth said the Nifty is still consolidating, although the broader bias remains positive. 

The index closed above its 20-week moving average of 24,036, while the 100-week moving average at 24,423 continues to act as resistance.  

Radhakrishnan sees 24,190-24,335 as an important zone, with 24,710 as the next level if the setup strengthens. A move below 24,000 could bring further weakness. 

Read More: US-Based 3M Explores Expansion of R&D and Advanced Manufacturing Operations in India! 

Conclusion 

Foreign investors have finally posted two consecutive months of buying, while domestic institutions continue to put money into equities. For now, foreign and domestic flows are moving at very different speeds, with DIIs providing steadier support. 

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