Foreign Portfolio Investors (FPIs) have accelerated buying in Indian equities this month, infusing Rs 23,544 crore so far in August as improving quarterly earnings, a stable rupee and better market prospects lift sentiment.The inflow comes after FPIs invested Rs 20,200 crore in July, marking a sharp turnaround from four consecutive months of heavy selling and signalling renewed confidence in Indian equities.FPIs had withdrawn Rs 49,340 crore in June, Rs 32,963 crore in May, Rs 60,847 crore in April and a massive Rs 1.17 lakh crore in March. Prior to this selling streak, they had invested Rs 22,615 crore in February, according to CDSL data.Despite the recent buying, foreign investors have remained net sellers in Indian equities in 2026, withdrawing around Rs 2.3 lakh crore so far -- exceeding the Rs 1.66 lakh crore outflow registered during the entire 2025."The factors that are driving the FPIs back to the Indian market are: earnings growth revival as reflected in Q1 results, FPI withdrawal from the 'chip trade', rupee stability and the impressive growth prospects of companies in the broader market," V K Vijayakumar, Chief Investment Strategist, Geojit Investments, said.FPIs are not buying attractively valued leading large banking or IT stocks; instead they are selectively buying mid-caps despite elevated valuations, he added.In the coming week, investors will closely track crude oil price movements and developments in the ongoing US-Iran geopolitical tensions for further direction in the market, Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking, said.Foreign investor interest has also extended to the debt market. They invested Rs 852 crore in debt through the Fully Accessible Route (FAR), while they pulled out Rs 995 crore through the general route during the period under review. PTI