# FPIs Invest Rs 13,010 Crore in Indian Equities During Second Half of August

Foreign investors continue five-week buying spree, focusing on financial and healthcare sectors.

- **Source:** [Economic Times](https://brifing.si/source/37791137-c35a-4ffe-b6a9-fe103afc9e48)
- **Published:** 2026-09-04
- **Topic:** [Finance](https://brifing.si/c/finance)
- **Original article:** <https://economictimes.indiatimes.com/markets/stocks/news/fpis-pump-rs-13010-crore-into-equities-in-second-half-of-august/articleshow/133748713.cms>
- **On Brifing:** https://brifing.si/s/4d165170-935f-49e1-8c52-74b1950366e1

## Sustained Growth

Foreign Portfolio Investors (FPIs) pumped Rs 13,010 crore (approx. $1.56 billion) into Indian equities in the latter half of August. This marks the fifth consecutive week of foreign capital inflows. Total FPI investments in 2026 have exceeded Rs 48,000 crore. Investors particularly focused on consumer services, financials, and healthcare sectors.

## Sectoral Distribution

Financial sector attracted the highest foreign investment at Rs 4,200 crore. Healthcare received Rs 2,800 crore, while consumer services saw Rs 2,100 crore inflows. Capital goods sector regained interest with Rs 1,500 crore after previous outflows. Oil and gas sector experienced the largest outflows at Rs 950 crore.

## Global Context

India ranks third among emerging markets in FPI inflows. In H1 2026, Brazil led with $22 billion, followed by South Korea ($18 billion), while India attracted $15.6 billion. Investors are drawn by India's projected 6.5% GDP growth and stable macroeconomic indicators.

## Domestic Market Impact

FPI flows contributed to Sensex rising 4.2% in August, reaching 72,500. BSE's market capitalization surpassed $4.5 trillion. Foreign ownership in blue-chips like HDFC Bank, Reliance, and ICICI Bank rose to 40-45%, boosting liquidity and trading volumes.

## Policy Drivers

Government's tax incentives for foreign investors and infrastructure spending commitments boosted confidence. RBI pausing rate hikes and inflation easing to 5.2% helped. China's economic uncertainties are redirecting investors to alternative Asian markets.

## Risk Factors

Analysts warn global recession risks and potential US rate hikes could impact FPI flows. India's current account deficit reaching 2.8% of GDP and oil price volatility pose risks. Oil import financing concerns may unsettle foreign investors.

## Sectoral Shift

Investor interest aligns with India's digital transformation and renewable energy push. Fintech firms attracted $2.4 billion in 2026, green energy projects $1.8 billion. EV battery and solar tech investments are expected to grow.

## Long-Term Outlook

Experts note India's path to becoming world's third-largest economy by 2030. Demographic dividend, digital infrastructure, and manufacturing policies attract investors. 'Make in India' success could double manufacturing FPI flows by 2027.

## Sources covering this story

- https://economictimes.indiatimes.com/markets/stocks/news/fpis-pump-rs-13010-crore-into-equities-in-second-half-of-august/articleshow/133748713.cms — 

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_Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._
