Foreign buying in Indian stocks hits 23-month high in August, depository data shows

Foreign portfolio investors put $3.1 billion into Indian equities in August, the strongest monthly inflow in close to two years, Business Recorder reported. Citing National Securities Depository figures released on Friday, the publisher noted that this marked a second straight month of net buying. Upbeat earnings prospects for domestic companies and Reserve Bank of India measures to stabilise the rupee helped lift sentiment.

Even so, foreign investors have sold a net $24.6 billion of Indian shares so far this year, which puts 2026 on course for the largest annual outflow on record. Earlier selling followed a shift toward AI-focused companies in Taiwan and South Korea, while worries about higher oil prices and inflation also weighed. The Nifty and Sensex are still down 7.8% and 9.7% respectively in 2026, among the weakest performers in Asia and emerging markets.

For August as a whole, the Nifty and Sensex fell 1.2% and 1.5%, dragged lower by weakness in HDFC Bank and Reliance Industries. Broader indexes did better, with the small-cap index up 3.1% and the mid-cap index up 2.1%, both at record highs, while nine of 16 major sectors posted monthly gains.