Foreign Investors Increase Indian Equity Purchases During August
· Business · Economic Times
Foreign portfolio investors (FPIs) have moderately increased their purchases of Indian equities in August, recording net inflows of approximately $2.7 billion following a $2.45 billion investment in July. Domestic institutional investors (DIIs) also remained active, buying $4.6 billion in August, though their pace remains roughly 50% below the six-month average. This buying activity coincides with a surge in IPOs, qualified institutional placements (QIPs), and offers for sale (OFS), which totaled over ₹1.15 lakh crore during the two-month period. While foreign flows into Taiwan have recovered, South Korea has experienced significant outflows, marking a divergence in regional investment trends. Analysts note that recent FPI buying in India is selective and heavily focused on participating in large-scale stake-sale transactions.
Why it matters
Increased foreign and domestic investment provides liquidity to the Indian market, particularly as promoters and private equity firms utilize block deals to exit or reduce stakes.
Read the original report — Economic Times
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