Business

FPIs raise India bets in August, DIIs continue buying amid caution

By Sohail Khan 28 August 2026, 6:26 am

Benchmarks
Nifty24,090.85-116.91

Precious Metal
Gold (MCX) (Rs/10g.)159,189.00-474.0

Enter search text:

Business News›Markets›Stocks›News›FPIs raise India bets in August, DIIs continue buying amid caution

Read Today's Paper

FPIs raise India bets in August, DIIs continue buying amid caution
Synopsis

After a robust July, foreign portfolio investors increased their equity acquisitions in August, marking a moderate uptick. Domestic institutional investors also continued their purchasing activities, though at a more measured pace. This buying spree aligned with a surge in IPO and OFS issuances within Indian markets. Interestingly, foreign investment trends shifted away from South Korea while Taiwan benefited from inflows.

Listen to this article in summarized format

Loading…
×
×

Unlock AI Briefing and Premium Content

New Year Offer 24 Hours Left
Already a member? Sign In

What's Included

Exclusive Stories
Daily ePaper Access
Smart Market Tools
Curated Investment Ideas
Ad-lite Experience
Subscription

Foreign portfolio investors continue buying, selectively adding to their July bets in August — FPIs recorded net purchases of around $2.45 billion in July and $2.7 billion in August so far.

Mumbai: Foreign portfolio investors (FIIs) moderately stepped up purchases of Indian equities in August after turning buyers in July following four months of selling, while domestic institutional investors (DIIs) continued to buy, though at a slower pace.

FPIs recorded net purchases of around $2.45 billion in July and $2.7 billion in August so far. DIIs bought around $3.65 billion in July and $4.6 billion in August so far, though their buying during the two months was around 50% below their average monthly investment over the previous six months, according to ET calculations.

ETMarkets.com

Foreign portfolio investors continue buying, selectively adding to their July bets in August

Rajesh Palvia, head of research at Axis Securities, said the recent FPI buying has been selective and partly driven by opportunities in stake-sale transactions such as offers for sale (OFS), qualified institutional placements (QIPs) and other block deals.

Indian markets saw combined IPO, QIP and OFS issuances of over ₹1.15 lakh crore during July and August as promoters and early-stage private equity sold some of their stakes through block and bulk deals.

FPI buying in July and August followed four months of selling, even as foreign flows into some other Asian markets weakened. For much of CY26, Taiwan and South Korea had attracted strong foreign flows, supported by earnings momentum and the AI infrastructure trade.

The trend reversed in July, with Taiwan and South Korea seeing foreign outflows of $22.95 billion and $6.26 billion, respectively. South Korea recorded its third consecutive month of foreign selling. The trend has diverged in August so far, with Taiwan attracting $6.28 billion of foreign inflows. South Korea saw further outflows of $7.6 billion.

Read more: Sebi proposes merchant banker exemption for small-value private debt issues

"I don't see this as sustained buying in India," Palvia said. "Foreign investors could turn sellers again once they deploy money into stocks offering better valuations, as geopolitical uncertainties remain."

DII flows, meanwhile, have slowed as fund managers turned cautious amid the lack of buying opportunities across the board. "Domestic fund managers are more selective about deployment at current valuations," said Sneha Poddar, VP-research, wealth management, Motilal Oswal Financial Services. "Domestic institutions had already front-loaded a large share of their buying this year, leaving less fresh capital to sustain the same monthly pace now that FIIs have turned buyers."

Add as a Reliable and Trusted News Source
Add Now!

(You can now subscribe to our ETMarkets WhatsApp channel)

(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

…moreless

(You can now subscribe to our ETMarkets WhatsApp channel)

Read More News on
fund managersAxis SecuritiesipofpiIndian equitiesmotilal oswal financial services

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

…moreless

Enter search text:

BrowseCompanies:
ABCDEFGHIJKLMNOPQRSTUVWXYZ
123456789

Continue reading with one of these options:
Limited Access
Free
Login to get access to some exclusive stories

& personalised newsletters
Login Now

Unlimited Access
Starting @ Rs120/month
Get access to exclusive stories, expert opinions &

in-depth stock reports
Subscribe Now

Unlock Access to All Exclusives with ETPrime FREE TRIAL

15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers

Trial offer expiring in00 : 05 : 00

I'd rather pay ₹2599 now

Uh-oh! This is an exclusive story available for selected readers only.

Worry not. You’re just a step away.

Prime Account Detected!

It seems like you're already an ETPrime member with

Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.

Unlock ETPrime's Exclusive Stories Today!

Subscribe to gain powerful insights on business, stock market and industry trends.

Big Price Drop! Flat 40% Off

Student Only Offer

Already a Member? Sign In now

Already a Member? Sign In now
Already a Member? Sign In now

Offer Exclusively For You

Save up to Rs. 700/-

ON ET PRIME MEMBERSHIP

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get Flat 40% Off

Then ₹ 1749 for 1 year

Avail Offer

Offer Exclusively For You

ET Prime at ₹ 49 for 1 month

Then ₹ 1749 for 1 year

Avail Offer

Special Offer

Get flat 40% off on ETPrime

Avail Offer
Avail Offer

Claim NowAlready a Member? Sign In now

Need Assistance?

Connect with an ETPrime expert for personalized support and guidance

+91 9484700004

' + h3 + '

' + h4 + '

' + listing + '

What’s Included with

ETPrime Membership

1Exclusive Insights That Matter

Uncover the truth with our investigative stories

Make strategic moves using the real-world case studies

Read industry-specific stories to identify emerging trends

Spot opportunities with in-depth insights that matter

Trump temper on H-1B visas is forcing Indians to do these things to stay put in US

What Adani’s US indictment means for India Inc’s overseas fundraising
Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.

Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?
Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?

The problem with lab grown diamonds
Why a falling rupee is a better option for the economy

A list of top 20 momentum stocks that have delivered massive returns in one year