- Foreign Portfolio Investors net bought Rs 20,200 crore in Indian stocks during July 2026
- July inflows followed four months of heavy FPI selling from March to June 2026
- Consumer Services, Healthcare, and Consumer Durables led sectors with highest FPI inflows
Foreign Portfolio Investors (FPIs) turned net buyers in the Indian stock market during July 2026 after relentless selling for the four consecutive months, as improved valuations in the large-cap segment attracted overseas capital.
According to the data from the National Securities Depositories Ltd (NSDL), FPIs net bought Indian stocks worth Rs 20,200 crore in the month of July. The inflows came after a selloff of Rs 1,17,775 crore in March, Rs 60,847 crore in April, Rs 32,963 crore in May and Rs 49,340 crore in June.
FPI inflows during July was mostly concentrated in the first half of the month, with inflows to the tune of Rs 15,560 crore from July 1 to 15, and Rs 4,642 crore from July 16 to 31.
Analysts attribute this shift of stance to the heightened volatility in other Asian markets amid the recent sell-off in semiconductor stocks.
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“The excessive volatility in markets like South Korea and Taiwan and the concentration risk in the ‘chip trade' are prompting the FPIs to look for stabler markets like India. The stability in rupee and fair valuations of India's large cap stocks are other factors that are facilitating the renewed FPI inflows into India,” said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
A significant recent trend, he noted, is the FPIs buying into Indian mid-cap and small-cap stocks, and increasing their allocation to these segments, buoyed by their high growth potential.
Here's a look at the sectors which FPIs bought and sold the most during July 2026.
Sectors With Highest FPI Inflows
Sectoral data from NSDL showed that Consumer Services emerged as the biggest beneficiary of FPI inflows, attracting Rs 10,201 crore during July. The sector strong investments worth Rs 7,361 crore in the first fortnight, followed by another Rs 2,840 crore in the second half.
Healthcare sector followed with net inflows of Rs 7,755 crore last month. The sector saw FPI buying of Rs 4,101 crore during the first half of the month and Rs 3,654 crore during July 16-31.
Consumer Durables sector received foreign investment to the tune of Rs 7,342 crore, while Metals & Mining sector attracted overseas investment of Rs 4,937 crore last month.
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FPI inflows in Information Technology (IT) sector was at Rs 3,358 crore, with most of the buying coming in the latter half of July.
Construction Materials saw inflows worth Rs 2,445 crore, and Realty sector received Rs 1,793 crore in inflows. Textiles and Chemicals sectors attracted FPI inflows of Rs 454 crore and Rs 418 crore, respectively.
Sectors With Highest FPI Outflows
Capital Goods sector witnessed the highest FPI outflows in July at Rs 6,275 crore, with selling of Rs 2,657 crore in the first half and Rs 3,618 crore in the second half of the month, NSDL data showed.
Telecommunication sector saw second-highest selling, recording net outflows of Rs 5,725 crore. Foreign investors pulled out Rs 4,564 crore from Automobile & Auto Components sector and Rs 2,863 crore from the Power sector in July.
Other sectors that saw FPI outflows in July were Construction (Rs 1,199 crore), Financial Services (Rs 694 crore), Fast Moving Consumer Goods (FMCG) (Rs 628 crore), Media, Entertainment & Publication (Rs 265 crore), Oil, Gas & Consumable Fuels (Rs 255 crore) and Utilities (Rs 44 crore).
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