Despite foreign investors infusing billions into Indian equities, benchmark indices struggle to keep pace. Inflows in the primary market are notable but fail to directly uplift listed stocks. Selective purchases are occurring in large mid-cap stocks while financials and IT remain ignored. Domestic investors are a crucial pillar for market resilience, necessitating consistent secondary market activity for a comprehensive rally.

In August, foreign investors channeled an impressive $3.1 billion into Indian equities, marking the largest monthly inflow in nearly two years. This surge in investment was…

FII inflows into Indian equities reached ₹29,631 crore in August 2026, the highest in two years, reversing previous outflows.