July Fortnight Review: FPIs Turn Net Buyers; DII & MF Buying Momentum Moderates
FPI Buying: Broad-Based Inflows Across Consumption, Commodities and Healthcare – During 1st–15th July 2026, FPI activity turned distinctly positive, with buying spread across several sectors. Consumer Services attracted the highest inflow of ₹7,361 Cr, followed by Metals & Mining at ₹5,993 Cr and Healthcare at ₹4,101 Cr. FPIs also purchased Services worth ₹2,405 Cr, Consumer Durables ₹2,384 Cr, Realty ₹2,072 Cr, Financial Services ₹1,975 Cr and Construction Materials ₹1,574 Cr. This indicates renewed FPI interest in consumption-linked sectors, commodities, healthcare and domestic-growth themes.
FPI Selling: Automobile and Capital Goods Lead FPI Selling –
Selling was relatively concentrated, led by Automobile with an outflow of ₹6,936 Cr, followed by Capital Goods at ₹2,657 Cr and Telecommunication at ₹2,454 Cr. FPIs also reduced exposure to Power by ₹1,267 Cr and FMCG by ₹1,106 Cr, while selling in Media, Chemicals and Forest Materials remained limited.
FPI Equity Buying Resumes: FPIs invested ₹15,559 Cr during 1st–15th July 2026, extending the ₹14,110 Cr buying seen in the second half of June. Inflows included ₹6,621 Cr in secondary markets and ₹8,938 Cr through primary markets/IPOs, indicating an improvement in foreign investor sentiment after four months of selling.
FPI Debt Flows Stay Positive: After record debt inflows of ₹55,518 Cr in June 2026, the positive momentum continued in the first half of July, with FPIs investing another ₹9,066 Cr, taking CY2026 debt inflows to ₹72,850 Cr. July inflows were led by Debt FAR at ₹7,234 Cr and Debt General at ₹3,946 Cr, partly offset by a ₹2,114 Cr outflow from Debt VRR. Continued buying through the FAR and General routes indicates that June’s tax incentives, wider FAR eligibility and regulatory easing remain supportive of foreign demand for Indian government debt.
DII Buying Slows, but CY2026 Investment Hits Record: DIIs invested ₹17,070 Cr during 1st–15th July 2026, only slightly above ₹15,264 Cr in the second half of June, while FPI flows also turned positive during the period. Despite slower fortnightly purchases, cumulative DII equity investment reached a record ₹4,77,808 Cr till 15th July 2026, reinforcing domestic liquidity as the market’s key structural support.
MFs Remain Net Buyers: Mutual funds invested ₹8,224 Cr in equities during 1st–15th July 2026, indicating a moderation in buying momentum continuing the moderation observed since the second half of June. Despite the slower fortnightly inflow, cumulative mutual fund equity investment in CY2026 rose to a record YTD investment of ₹3,02,668 Cr, crossing the ₹3 lakh crore mark and reinforcing their continued support to domestic equities.
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