Foreign portfolio investors made a strong comeback to Indian equities in July, bringing in ₹20,199 crore after months of selling. The shift was largely driven by volatility in South Korea and Taiwan, where chip-related trades saw sharp swings. India’s relative stability and attractive valuations encouraged investors to redirect funds here.
Data shows that ₹6,731 crore was invested through stock exchanges, while another ₹13,467 crore came via primary market and other routes. Debt inflows were even stronger, with ₹29,211 crore entering under the general limit category. This combined inflow of ₹49,410 crore highlights renewed confidence in India’s financial system.
Market experts point out that India’s stable rupee and fair pricing of large-cap stocks are reassuring for global investors. At the same time, mid- and small-cap segments are drawing attention due to their higher growth potential. According to Dr. V.K. Vijayakumar of Geojit Investments, excessive volatility in other Asian markets is pushing foreign investors to seek safer ground in India.
The return of foreign funds is expected to boost liquidity and support stock prices, especially in growth-oriented sectors. For policymakers, this trend reinforces India’s position as a reliable and promising investment destination amid global uncertainty.
