Foreign portfolio investor (FPI) flows into Indian equities strengthened further in August 2026, with net inflows rising to Rs 29,826 crore from Rs 20,202 crore in July, according to a report by IDBI Capital Markets & Securities Ltd. August marked the third consecutive month of foreign equity inflows, with the improvement also becoming broader across sectors. As many as 10 of the 16 sectors tracked by the brokerage recorded net inflows during the month.
However, total portfolio flows moderated to around Rs 25,500 crore in August from Rs 40,000 crore in July, indicating that the improvement in equity flows was not mirrored across the broader portfolio.
Financial Services recorded one of the strongest reversals during August, attracting net inflows of Rs 10,494 crore after witnessing an outflow of Rs 694 crore in July. This was the sector's strongest monthly inflow during the period under review.
Consumer Services remained a major contributor, recording inflows of Rs 8,417 crore in August, although the figure moderated from Rs 10,201 crore in July. Healthcare also continued to attract foreign investors, with inflows of Rs 5,931 crore in August compared with Rs 7,755 crore in July.
IT & Services remained broadly stable, with FPI inflows at Rs 5,886 crore in August against Rs 5,762 crore in July.
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Automobile & Auto Ancillary witnessed a sharp turnaround in August. The sector recorded inflows of Rs 3,106 crore after an outflow of Rs 4,564 crore in July. Consumer Durables, however, saw its inflows moderate significantly to Rs 3,903 crore in August from Rs 7,342 crore in July.
Metals & Mining also recorded positive flows, although inflows eased to Rs 1,807 crore from Rs 4,937 crore in July. Despite the moderation, the sector remained the largest cumulative gainer on a year-to-date basis. Capital Goods turned positive during August, attracting Rs 606 crore after recording an outflow of Rs 6,275 crore in July.
Materials saw inflows narrow sharply to Rs 683 crore from Rs 3,346 crore in July, while Construction turned marginally positive with inflows of Rs 38 crore after an outflow of Rs 1,199 crore in the previous month.
While the overall breadth of FPI buying improved, several sectors continued to see foreign outflows.
Media & Telecommunication recorded an outflow of Rs 4,917 crore in August, although this was lower than the Rs 5,990 crore outflow seen in July. Oil, Gas & Consumable Fuels saw its outflow widen to Rs 1,761 crore from Rs 255 crore in July.
Power & Utilities recorded an outflow of Rs 1,584 crore, narrowing from Rs 2,907 crore in July. FMCG remained under pressure, with outflows deepening to Rs 1,916 crore from Rs 628 crore in July. The sector continued its losing streak, recording outflows in every month covered in the report.
Real Estate also reversed into an outflow of Rs 594 crore in August after attracting Rs 1,793 crore in July. Diversified & Others turned negative as well, recording an outflow of Rs 471 crore after an inflow of Rs 1,578 crore in July.
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