Mata Securities India Pvt Ltd | SEBI Registered Research Analyst | Reg. No. INH000022668 | SEBI Registered MF Distributor | ARN-0158
FPI Flows: Equity Buying Momentum Continues, While Three-Month Debt Buying Streak Ends
FPIs Extend Equity Buying for the Second Straight Month: FPIs recorded net equity inflows of ₹29,631 Cr in August 2026, extending the buying momentum for the second straight month after four consecutive months of outflows. Foreign investors remained net buyers in both halves of the month, investing ₹16,621 Cr during August 1–15 and ₹13,010 Cr during August 16–31. In CY2026, FPIs have recorded positive equity flows only in February, July and August, showing an improvement in sentiment, though foreign participation remains selective.
FPIs Turn Sellers in Debt, Breaking Three Consecutive Months of Buying: FPIs recorded net debt outflows of ₹1,457 Cr in August, ending a three-month streak of positive debt flows. Selling was relatively modest at ₹340 Cr during August 1–15, but accelerated to ₹1,117 Cr during August 16–31, indicating that the pressure was concentrated in the second half of the month. August also marked only the third month of net FPI debt selling in CY2026, suggesting that foreign appetite for Indian fixed income remains relatively resilient despite the monthly reversal.
Financial Services Leads FPI Buying; Consumer Services and Healthcare See Strong Inflows: FPI buying in August 2026 was led by Financial Services, which attracted net purchases of ₹10,494 Cr, with ₹6,535 Cr in the first half and ₹3,959 Cr in the second half. Consumer Services followed with strong inflows of ₹8,417 Cr, with buying accelerating to ₹5,019 Cr in the second half from ₹3,398 Cr in the first half. Healthcare also remained a preferred sector, attracting net purchases of ₹5,931 Cr during the month.
Telecommunication Faces Sustained Selling; FMCG and Oil & Gas Weaken Sharply: On the selling side, Telecommunication witnessed the highest FPI outflows of ₹4,983 Cr, with selling continuing across both halves of August. FMCG recorded net outflows of ₹1,916 Cr, with selling accelerating sharply in the second half. Oil, Gas & Fuels reversed from ₹490 Cr of first-half buying to ₹2,251 Cr of second-half selling, resulting in net outflows of ₹1,761 Cr, while Power also witnessed sustained selling of ₹1,553 Cr.
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