MUMBAI: Foreign portfolio investors (FPIs) turned net buyers in Indian equities in July, breaking a four-month streak of heavy outflows, even as overall flows in 2026 remain under pressure.Net FPI equity inflows stood at nearly $1.6 billion (Rs 14,946 crore) till July 24, marking a reversal after sustained selling between March and June.Supported by continued buying in debt, total FPI inflows across asset classes rose to nearly $4.4 billion (Rs 41,796 crore) in July, making it the strongest month for foreign inflows so far this year and surpassing February’s $4.2 billion (Rs 37,804 crore).

A large chunk of the inflows came from SBI Funds IPO where FPIs participated both in the anchor as well as QIP book.

According to V K Vijayakumar, chief investment strategist at Geojit Investments, July inflows have been largely driven by primary market activity, alongside sustained investor interest in debt following taxation changes by govt.Data show that the equity segment saw intense selling pressure earlier in the year, with outflows of $12.7 billion in March, followed by $6.5 billion in April, $3.5 billion in May and $5.2 billion in June. This cumulative sell-off of over $27.8 billion was only partly offset by the July inflows, leaving year-to-date equity flows at a net outflow of $27.7 billion.In contrast, debt markets have remained resilient, attracting $9.5 billion in inflows so far in 2026.Despite the July recovery, total FPI flows across asset classes remain in the red at $18.4 billion (Rs 1.7 lakh crore) so far in 2026, indicating that a durable turnaround will depend on global stability and domestic macro resilience.