Foreign portfolio investors (FPIs) turned net buyers in Indian markets during the week ended July 3, 2026, pumping in a combined net investment of ₹16,461.84 crore across equity, debt, and hybrid instruments over all trading sessions, according to data from the National Securities Depository Limited (NSDL).
The week, which began with the final two sessions of June before transitioning into July, saw consistent net inflows on each day. On June 29, FPIs logged their highest single-session net investment of the week at ₹5,986.33 crore, followed by ₹4,334.95 crore on June 30. In July, net inflows stood at ₹552.98 crore on July 1, ₹2,608.01 crore on July 2, and ₹3,000.90 crore on July 3.
The positive momentum this week stands in contrast to the broader trend for June as a whole. For the full month of June 2026, FPIs were net sellers in equities to the tune of ₹49,340.45 crore through stock exchanges and the primary market combined, even as debt markets saw substantial net buying with FPIs investing ₹30,620.28 crore under the General Limit, ₹21,652.09 crore under the Fully Accessible Route (FAR), and ₹3,246.04 crore under the Voluntary Retention Route (VRR). Overall, June closed with a net FPI inflow of ₹4,668.86 crore across all instruments.
“The highlight of the June FPI activity is the significant tapering of FPI selling and their buying for a few days towards the end of June,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited. “Going forward, FPI outflows are likely to decline.”
For the year 2026 so far, FPIs remain heavy net sellers, with cumulative net outflows of ₹2,12,872.28 crore across all asset classes as of July 3. Equity has borne the brunt of this selling pressure, with FPIs recording net outflows of ₹2,74,272.90 crore through the secondary and primary markets combined on a year-to-date basis.
“The total FPI selling for 2026, till the end of June, stands at ₹2,94,387 crore [through stock exchanges],” Vijayakumar noted. “Since FPIs invested ₹20,114 crore through the primary market, the net FPI outflow this year through June end stood at ₹2,74,272 crore.”
Market participants are now watching several domestic and global factors that could influence the direction of FPI flows in the coming weeks. Vijayakumar pointed to crude oil prices and rupee stability as key variables. “Crash in crude price to below $72 and the big inflows expected from the FCNR(B) deposits will bring India’s BoP deficit significantly down,” he said. “This will help the rupee to stabilise and even appreciate, which in turn, will prevent big FPI selling.”
Looking ahead, analysts expect institutional flows to remain sensitive to the progress of the monsoon season, given its implications for rural demand and inflation, as well as the unfolding Q1FY27 corporate earnings season. Global cues, including the trajectory of US-Iran negotiations, crude oil price movements, and the minutes of the US Federal Reserve’s June policy meeting, are also expected to shape sentiment. “The weakening of the chip trade globally, and the significant correction in Kospi in particular, may even persuade FPIs to turn buyers in India,” Vijayakumar added.