By Admin 
- After four months, FPIs increased investment in Indian shares.
- Better results of Indian companies, reason for expectations of US rate cut.
- FPIs invested money in private banks, FMCG and aviation.
Share Market: Foreign portfolio investors (FPIs) are buying Indian shares openly these days. After selling for the last 4 consecutive months, FPIs have bought shares worth Rs 15157 crore in the initial weeks of July 2026. Earlier in the last weeks of June also, FPIs had started buying at lower levels, but the aggressive manner in which foreign investors have invested money in Indian stocks in July has completely ended the drought of the last 4 months. Along with equity, FPIs are also investing in government bonds and debt markets. Due to this, the country’s foreign exchange reserves are also getting a lot of support.
According to Central Depository Services (India) Limited (CDSL) data, FPIs sold Indian shares worth Rs 49,340 crore in June, Rs 32,963 crore in May, Rs 60,847 crore in April and Rs 1.17 lakh crore in March. Now they are again turning towards the Indian stock market. Before the selling phase, in February, foreign investors had made a net investment of Rs 22,615 crore in the Indian stock market. So far in the year 2026, FPIs have withdrawn a total of Rs 2.60 lakh crore from Indian stocks.
Why are FPIs buying Indian shares?
- Big companies like HDFC Bank, Kotak Mahindra Bank and Yes Bank have shown excellent results in the first quarter of the business year 2027. This proved that the foundation of the Indian banking and consumer market is very strong. FPIs consider this very positive for the Indian economy.
- The slow pace of employment in the US in June has once again increased expectations of a cut in interest rates by the US Fed: When the Fed Reserve reduces interest rates, investors start investing their money in emerging markets like India.
- The Indian rupee strengthened due to the US 10-year bond yield and the dollar index slipping below its high levels, which has eliminated the currency risk of foreign investors.
In which sectors did FPIs invest the most money?
According to market experts, foreign investors are investing more and more in big private banks, FMCG sectors in view of improvement in rural demand, paint and aviation stocks due to fall in crude oil.
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