FPIs Continue Buying Streak With ₹1,963 Crore Purchase On Wednesday Despite West Asia Jitters

Foreign portfolio investors (FPIs) remained on the buy side for a fourth consecutive session on Wednesday, picking up ₹1,962.80 crore worth of Indian equities even as geopolitical concerns from West Asia kept the broader market under pressure.

Domestic institutional investors also turned net buyers during the session, purchasing ₹790.16 crore worth of shares after having sold ₹383 crore the previous day.

The four-session buying streak has brought FPI net purchases in the current period to approximately ₹3,953.8 crore. For July as a whole, overseas investors have been consistent buyers, having mopped up a net ₹5,404 crore so far in the month.

FPI Buying Rebounds After Months of Selling

The recent buying stands in sharp contrast to what preceded it. FPIs have been net sellers of Indian equities for most of 2026 with net outflows of about ₹2.68 lakh crore since January.

March was the worst month on record, with foreign investors offloading ₹1.18 lakh crore in a single month as the US-Iran war escalated and global risk appetite collapsed. April saw further selling of ₹60,847 crore, and June recorded outflows of ₹49,340 crore.

The only exception was February, when FPIs net bought ₹22,615 crore amid a brief improvement in global sentiment, before the West Asia situation deteriorated further and pushed them back to selling through March and April.

RBI Measures Support Foreign Investment

Part of the improved FPI appetite in July can be traced to policy moves made in June. The RBI relaxed investment limits for foreign portfolio investors in government securities and state development loans, allowing overseas investors to inject up to ₹4.62 lakh crore in government securities during the April to September 2026 period.

While equity flows are showing signs of stabilising, the broader picture remains cautious. Renewed flare-ups in West Asia continue to create uncertainty, and any re-escalation could quickly reverse the nascent buying trend that has emerged in July.

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