The equity segment drew net inflows of ₹12,921.14 crore during the five-session week
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Foreign Portfolio Investors (FPIs) turned decisive net buyers of Indian markets in the first week of August, pumping in a total of ₹12,290.68 crore across the equity, debt, hybrid and mutual fund segments between August 3 and August 7, 2026, according to data by the National Securities Depository Ltd (NSDL).The equity segment was the single largest draw, attracting net inflows of ₹12,921.14 crore during the five-session week, a sign that the buying momentum seen through July has carried into August. Within the week, August 5 stood out as the strongest single session, with equities alone drawing a net ₹9,323.38 crore, while August 3 and August 4 saw comparatively modest net inflows of ₹1,351.02 crore and ₹1,431.45 crore, respectively. The trend moderated toward the end of the week, with equity net inflows slowing to ₹349 crore on August 6 and ₹466.29 crore on August 7.The debt segment presented a mixed picture. Under the Debt-General Limit route, FPIs were net buyers to the tune of ₹621.69 crore for the week, but this was more than offset by outflows elsewhere in fixed income. The Debt-Voluntary Retention Route (Debt-VRR) saw net outflows of ₹354.20 crore, while the Debt-Fully Accessible Route (Debt-FAR) recorded net outflows of ₹377 crore over the five sessions. Hybrid instruments also saw FPIs pull out a net ₹570.74 crore during the week. Mutual fund routes remained marginal contributors, adding a net ₹49.79 crore, while Alternative Investment Funds (AIFs) recorded no activity through the week.Day-wise, the overall FPI tally swung from a strong net inflow of ₹2,245.57 crore on August 3 and ₹814.09 crore on August 4, to a sharp surge of ₹9,953.64 crore on August 5, the standout session of the week, before turning negative with net outflows of ₹446.41 crore on August 6 and ₹276.21 crore on August 7.Market experts pointed to a broader shift in investor sentiment behind the numbers. Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, said, “The trend of FPIs turning buyers in India, which was pronounced in July, has continued in August so far,” adding that FPIs “continued to invest in the debt market through the debt general limit.”He noted that FPIs have shown a “preference for sectors like automobiles, consumer durables and health care,” pointing out that “the FY27 Q1 results of these sectors also indicate good earnings growth, which justify the FPI accumulation in these sectors.” He also observed that FPIs “continued their investment in mid and small-cap growth stocks across sectors,” while cautioning that elevated US bond yields “has the potential to attract a lot of funds to the safe US bond markets,” which could cap the durability of the buying trend.According to Pabitro Mukherjee, Deputy Vice-President-Research at Bajaj Broking, the sustained buying by foreign as well as domestic institutional investors was “largely driven by the de-escalation of geopolitical tensions, which helped strengthen investor confidence and supported positive market sentiment.”Dr. Ravi Singh, Chief Research Officer at Master Capital Services Ltd, attributed part of the positive mood to easing tensions between the US and Iran, alongside “better-than-expected Q1 earnings, robust auto sales numbers, and a balanced RBI monetary policy stance,” which he called “the week’s key positive drivers.”Offering a longer-term perspective, N. ArunaGiri, Founder & CEO of Trustline Holdings, said India may be emerging as a beneficiary of a broader capital rotation, noting that “global investors may already be rotating capital away from crowded AI trades towards relatively under-owned markets such as India.” He added that the geopolitical situation in West Asia “remains” the key variable to watch going forward.Published on August 8, 2026
