Domestic Institutional Investors (DIIs) purchased shares worth ₹2,947 crore on July 23, 2026, while Foreign Portfolio Investors (FPIs) sold ₹2,999 crore on the same day, according to data from Moneycontrol. This activity comes after a significant outflow of nearly ₹49,000 crore from Indian equities in June.
Key Details
FPIs have returned to the Indian stock market in July, investing a net ₹17,227 crore, marking the end of a four-month selling streak. This follows substantial withdrawals of ₹2.57 lakh crore in total for 2026, with the largest monthly outflow occurring in March at ₹1.18 lakh crore, as reported by Livemint. The recent inflow has raised hopes among investors that a trend reversal may be underway, despite ongoing global uncertainties.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, noted that the shift in FPI flows reflects a change in global investor positioning, particularly as investors become cautious on semiconductor-heavy markets like South Korea and Taiwan. However, he warned that rising crude oil prices, driven by escalating conflicts in West Asia, pose a significant macroeconomic risk for India, potentially impacting inflation and corporate profitability.
Background
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, highlighted that the FPI flows in July indicate a clear rotation across sectors, suggesting a more favorable outlook for Indian equities. Investors are encouraged to monitor these developments closely as they could signal a sustained recovery in foreign investment.
The recent inflow of FPI capital is likely to support Indian equities, particularly in sectors benefiting from renewed investor interest. However, elevated crude oil prices could temper this momentum by raising concerns over inflation and corporate earnings. Watch for further updates on crude oil price movements and their potential impact on FPI behavior in the coming weeks.