Open Your Free Demat Account
Enjoy low brokerage on delivery trades
By Dalal Street Investment Journal (DSIJ)
FIIs turned net buyers in July after four months of selling, investing ₹20,200 crore. Consumer Services, Healthcare and Metals attracted strong foreign buying. FIIs have continued their buying streak in August, investing ₹13,942 crore so far.
Foreign institutional investors (FIIs) have turned net buyers in Indian equities after four consecutive months of selling. The shift came in July, when foreign investors bought equities worth ₹20,200 crore on a net basis.
The buying has continued in August as well. FIIs have invested ₹13,942 crore in Indian equities so far this month, according to the data available as of August 10. This takes their combined buying in July and August to more than ₹34,000 crore.
The turnaround is notable because it comes after a sharp period of foreign selling earlier in the year. It also happened at a time when global markets remained volatile due to renewed Iran tensions and elevated crude oil prices.
The change in July becomes clearer when compared with the previous four months. FIIs were net sellers in every month from March to June.
Foreign investors sold equities worth ₹1,17,775 crore in March. The outflow remained high in April at ₹60,847 crore. Selling slowed in May, but FIIs still withdrew ₹32,963 crore from Indian equities.
June brought another ₹49,340 crore of net selling.
Overall, FIIs pulled out around ₹2.61 lakh crore from Indian equities during these four months. Against this backdrop, the ₹20,200 crore inflow recorded in July represents a major shift in direction.
Month | FII Equity Flow |
March 2026 | -₹1,17,775 crore |
April 2026 | -₹60,847 crore |
May 2026 | -₹32,963 crore |
June 2026 | -₹49,340 crore |
July 2026 | +₹20,200 crore |
August 2026** | +₹13,942 crore |
Source: NSDL
The change in foreign flows was visible across a wide part of the market.
FIIs were net buyers in 12 of the 20 sectors in July. This was a sharp improvement from June, when they were net sellers in 12 sectors.
Consumer Services attracted the largest FII inflow during the month. Foreign investors invested around $1.1 billion, or approximately ₹10,478 crore, in the sector.
Healthcare followed with an inflow of around $0.8 billion, equivalent to roughly ₹7,620 crore.
Together, Consumer Services and Healthcare accounted for close to 90% of the total FII inflows recorded during the month, according to the Motilal Oswal data.
FIIs also returned to sectors such as Technology and Real Estate after a period of weaker or volatile flows.
The metals sector also saw a notable change in foreign investor activity.
FIIs invested around $0.5 billion, or nearly ₹4,763 crore, in metals during July. This marked a sharp turnaround from June, when the sector saw close to $1 billion of FII outflows.
Indian equities had gone through a period of correction amid sustained foreign selling. This brought valuations down from earlier levels and created opportunities for investors who had been waiting for more reasonable entry points.
The Q1 FY27 earnings season also provided some comfort. The first set of results pointed to healthy earnings growth across several sectors. As a result, confidence in the earnings outlook for Indian companies improved.
Markets such as South Korea and Taiwan have attracted significant foreign money because of their exposure to artificial intelligence and semiconductor companies. However, some of these trades had become crowded after a strong run.
As investors reassessed their positions, some of the money moved to other emerging markets. India emerged as one of the destinations, given its broader sectoral exposure and domestic growth prospects.
The Sensex and Nifty gained around 2 per cent each during the month. The broader market also remained positive. The BSE Midcap 150 index rose 2.1%, while the BSE SmallCap 250 index gained 0.4%.
The positive trend has continued into August so far.
According to the data provided, FIIs have invested ₹13,942 crore in Indian equities in August as of August 10.
Source: Dalal Street Investment Journal (DSIJ)
SEBI Registered Research Analyst (INH000006396).
Founded in 1986, Dalal Street Investment Journal (DSIJ) brings decades of experience in India’s equity markets. DSIJ's research combines fundamental analysis with price action, guided by disciplined risk management and capital preservation. They follow a structured, data-driven approach designed to help investors and traders make informed decisions beyond short-term market noise.
Disclaimer :
Investments in securities market are subject to market risk, read all related documents carefully before investing. This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
The information on this website is provided on "AS IS" basis. Bajaj Broking (BFSL) does not warrant the accuracy of the information given herein, either expressly or impliedly, for any particular purpose and expressly disclaims any warranties of merchantability or suitability for any particular purpose. While BFSL strives to ensure accuracy, it does not guarantee the completeness, reliability, or timeliness of the information. Users are advised to independently verify details and stay updated with any changes.
The information provided on this website is for general informational purposes only and is subject to change without prior notice. BFSL shall not be responsible for any consequences arising from reliance on the information provided herein and shall not be held responsible for all or any actions that may subsequently result in any loss, damage and/or liability. Interest rates, fees, and charges etc., are revised from time to time, for the latest details please refer to our Pricing page.
Neither the information, nor any opinion contained in this website constitutes a solicitation or offer by BFSL or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service.
BFSL is acting as distributor for non-broking products/ services such as IPO, Mutual Fund, Insurance, PMS, and NPS. These are not Exchange Traded Products. For more details on risk factors, terms and conditions please read the sales brochure carefully before investing.
Content Partner - Dalal Street Investment Journal Wealth Advisory Private Limited
This article is for educational purposes only and should not be considered investment advice. Market investments are subject to risks. DSIJ Wealth Advisory Private Limited is a SEBI-registered Research Analyst (Reg. No: INH000006396) and Investment Adviser (Reg. No: INA000001142). Please consult your financial adviser before investing.
For more disclaimer, check here : https://www.bajajbroking.in/disclaimer
Level up your stock market experience: Scan the QR to download the Bajaj Broking App for effortless investing and trading