Mata Securities India Pvt Ltd | SEBI Registered Research Analyst | Reg. No. INH000022668 | SEBI Registered MF Distributor | ARN-0158
FPI Flows: Equity Buying Returns After Four Months; Debt Inflows Continue but Moderate from June Peak
FPIs Return to Equity Buying in July, Supported by Strong Primary Market Participation: FPIs recorded net equity inflows of ₹20,200 Cr in July 2026, ending four consecutive months of selling. Foreign investors remained net buyers during both halves of the month, investing ₹15,559 Cr during July 1–15 and ₹4,641 Cr during July 16–31. The turnaround began in the second half of June and continued through July, indicating an improvement in foreign investor sentiment. July and February remain the only two months of CY2026 in which FPIs were net buyers in Indian equities.
Primary Markets Account for the Majority of July Equity Inflows: FPI equity buying was largely supported by primary market and IPO investments of ₹13,468 Cr, while secondary markets attracted ₹6,732 Cr. Primary market purchases accounted for nearly two-thirds of total equity inflows, highlighting stronger foreign participation in new issuances compared with listed secondary-market equities.
July DII Buying Moderates to the Lowest Level of CY2026: Domestic Institutional Investors invested ₹35,099 Cr in Indian equities during July 2026, marking the lowest monthly buying in the current calendar year and the lowest since April 2025, when investments stood at ₹28,228 Cr. Buying remained relatively balanced across the month, with ₹17,070 Cr invested in the first half and ₹18,030 Cr in the second half.
July Mutual Fund Buying Moderates Sharply: Mutual Funds invested ₹15,182 Cr in equities during July 2026, the lowest monthly buying since February 2026, when purchases stood at ₹11,422 Cr. Investments were moderately front-loaded, with ₹8,224 Cr deployed during July 1–15 and ₹6,958 Cr during July 16–31, indicating a gradual slowdown in buying momentum during the month.
For a comprehensive understanding and more insights, please go through our detailed report.