Foreign Portfolio Investors Inject Over Rs 15,156 Crore Into India

Foreign portfolio investors reversed a four-month selling streak in July 2026, investing over Rs 15,156 crore in Indian markets. This pivot includes Rs 5,155 crore from the secondary market and Rs 10,001 crore from the primary market and other categories. The surge follows a period of significant net outflows, including a peak withdrawal of Rs 1.17 lakh crore in March. Total net withdrawals for 2026 have reached Rs 2.6 lakh crore, exceeding the Rs 1.66 lakh crore withdrawn during the same period in 2025.

Government of India and the Reserve Bank of India implemented measures to attract this capital, including tax exemptions for investors on sovereign bonds and a revised FCNR-B deposit scheme. These changes to debt investment taxation specifically boosted flows via the General Limit and Fully Accessible Route. Other contributing factors include stable rupee values, improved domestic macroeconomic indicators, and capital redirection from South Korea due to a weak global chip trade.

Despite these inflows, geopolitical instability pressured markets. Tensions between the United States and Iran escalated after the U.S. President ended a ceasefire, leading to Iranian targets on U.S. military installations in Gulf states. This conflict briefly pushed Brent crude prices above $80 per barrel, snapping a four-week winning streak for Indian markets. However, SBI Research maintains a positive outlook, projecting that average crude oil prices for the Indian basket will remain at or below $80 billion.