Foreign portfolio investors (FPIs) turned net buyers for the second consecutive month in August, investing ₹30,919 crore in Indian markets, according to thehindubusinessline.com. This marks a continuation of positive inflows amid a volatile global economic environment. The Sensex closed at 77,264.51, up 330.92 points, while the Nifty ended at 24,175.65, gaining 84.80 points on the same day.
The inflows came as FPIs increased their exposure to Indian equities and debt instruments during August. Market data from thehindubusinessline.com shows that the positive sentiment was supported by improving macroeconomic indicators and easing global concerns. The steady investment trend followed a similar pattern seen in July, when FPIs had also turned net buyers after a period of outflows.
The return of FPI inflows is significant for the Indian capital markets, which had faced pressure from global uncertainties such as inflation and geopolitical tensions earlier in the year. Compared to other emerging markets, India has remained relatively resilient, attracting foreign investment due to its growth prospects and policy stability. The ₹30,919 crore inflow in August is among the highest monthly FPI investments this year, reinforcing India's position as a preferred destination for foreign capital.
The sustained FPI interest contributed to the Sensex crossing the 77,000 mark and the Nifty surpassing 24,000 points during August. Market participants will closely watch the Reserve Bank of India's upcoming policy decisions and global economic developments for further cues. The next key event is the RBI's monetary policy review scheduled for early September, which could influence foreign investment flows.