FPI Return: These Investors Were Present... Now Strong Comeback, Money in the Share Market The Indian stock market witnessed a significant resurgence in foreign portfolio investor (FPI) activity in August, marking a sharp reversal from a four-month period of heavy selling. Following a decline in investor confidence driven by geopolitical tensions, volatile crude oil prices, and economic uncertainties, FPIs have returned with renewed interest, injecting substantial capital into the market. In the first five trading days of August, FPIs invested Rs 12,921 crore, continuing a trend that began in July. During July alone, foreign investors had poured in Rs 20,200 crore, signaling a shift in sentiment. This comeback follows a prolonged period of outflows, during which FPIs had withdrawn nearly Rs 1.5 lakh crore from the market over four months. March saw the largest withdrawal of Rs 1.17 lakh crore, followed by Rs 60,847 crore in April, Rs 32,963 crore in May, and Rs 49,340 crore in June. Comparing the current year’s performance to 2025, FPIs have continued their selling spree, with cumulative outflows reaching Rs 2.41 lakh crore as of August. This surpasses the total outflows recorded in 2025, which stood at Rs 1.66 lakh crore. Despite the recent inflows, the overall trend for 2026 remains one of net selling, reflecting persistent concerns among global investors. Market experts attribute the turnaround to several factors. The anticipated cut in U.S. interest rates, declining crude oil prices, and stability in the Indian rupee have created a more favorable environment for foreign capital. Vedant Gupta, co-founder of investment firm Trackk, highlighted that the Reserve Bank of India’s (RBI) outlook on GDP growth and inflation has played a key role in restoring investor confidence.#geojit_investments #reserve_bank_of_india #bajaj_broking #foreign_portfolio_investor #trackk
