Due to the US-Iran conflict and bearish market conditions from March to June, Foreign Investors sold a large number of Indian shares. They sold:
- March: ₹1.17 lakh crore
- April: ₹60,847 crore
- May: ₹32,963 crore
- June: ₹49,340 crore
Before March, the FPI had invested around ₹22,615 crore in February. However, all changed in July as Indian market conditions improved, and foreign investors once again invested ₹20,200 crore; now, in the first week of August, they have already invested ₹12,921 crore.
Even though foreign investors have started investing again in Indian stocks, they have withdrawn more money. So far in 2026, FPIs have sold ₹2.41 lakh crore worth of shares from the Indian stock market, which is much more than the ₹1.66 lakh crore they sold in 2025.
Vedant Gupte, CEO of Trackk, said we can expect foreign investors to start investing more in the Indian Market. Falling US interest rates, a decline in crude oil prices in India, the Indian rupee becoming more stable, and the RBI giving a positive view on India’s economic growth and inflation have encouraged foreign investors to invest not only in IPOs but also in Indian stocks.
Pabitro Mukherjee (Bajaj Broking Deputy Vice President) also mentioned that the ongoing geopolitical tensions, conflicts, and war had reduced the interest of FPIs in the Indian market. However, in the past month, the conflict seems to have reduced, which sparked the interest of FIIs and DIIs again. This move is going to help strengthen India’s economy and support its growth.
VK Vijaykumar, Chief Investment Strategist, stated that he has seen a pattern in FYI buying. Foreign investors seem to invest mostly in sectors like automobiles, consumer durables, and healthcare, increasing their investment in these sectors.
Along with investing in the Indian stock market, FPIs also seem to be interested in investing in the Indian Debt market, such as government bonds and debt securities, and have invested ₹622 crore in India’s debt market at this time.
