Foreign portfolio investors, or FPIs, ended their four-month selling streak in July by investing about ₹20,200 crore in Indian equities. The rebound is an encouraging sign for the stock market and suggests that foreign investors are finding Indian shares more attractive again.
Market experts say the renewed interest came from a mix of factors. These include stable domestic market conditions, reasonable valuations in large-cap stocks, improving earnings outlook, and a more favourable global environment.
The turnaround matters because FPIs had been pulling money out of Indian markets for four straight months before July. That long stretch of selling had created pressure on sentiment, especially in equities.
A key reason for the recovery is that many investors now see India as relatively steady compared with some other global markets. Lower volatility, better corporate results, and stronger confidence in earnings growth have supported the comeback in foreign buying.
FPIs were also helped by the broader global mood. When international risk appetite improves, emerging markets like India often benefit as overseas investors look for better returns.
Even so, the July inflow should be seen carefully. It is a positive sign, but one month of buying does not automatically mean a long-term trend has fully reversed. For now, it mainly shows that foreign investors have returned after a sharp phase of selling.
