Mumbai, August 30, 2026 (Yes Punjab News)
Foreign portfolio investors (FPIs) bought Indian equities worth Rs 30,918 crore in August through August 29, marking the second consecutive month of net buying by overseas investors.
Of the total investment, Rs 18,790 crore came through stock exchanges, while Rs 12,128 crore was invested through the ‘primary market and others’ category.
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, attributed the renewed foreign flows to the reversal of the chip trade, stability in the rupee and improving earnings growth in India.
A notable trend in recent FPI activity has been increased allocation towards small- and mid-cap stocks, or SMIDs. Vijayakumar said their growth and earnings momentum remained significantly stronger than that of large-cap companies, adding that the trend was likely to continue.
On Friday, strong buying by domestic institutional investors (DIIs) helped offset selling pressure from foreign institutional investors. DIIs purchased around Rs 5,184 crore, providing support to the market.
On a month-to-date basis, FIIs remained marginal net buyers at around Rs 454 crore, marking a shift after several months of sustained foreign selling.
Indian equity markets, meanwhile, ended the week on a cautious note, extending their recent corrective phase amid concerns over global interest rates, geopolitical uncertainty and volatility surrounding the new Closing Auction Session (CAS).
The benchmark indices recovered sharply on Friday, aided by strong buying in IT stocks following positive global technology cues. However, they remained under pressure for a third consecutive week.
The Nifty declined around 0.31 per cent during the week to close at 24,175.65, while the Sensex fell nearly 0.36 per cent to settle at 77,264.51.
The introduction of CAS for F&O stocks was another key market development. Ajit Mishra, Senior Vice President, Research, Religare Broking Ltd, said the monthly derivatives expiry saw sharp price movements during the closing auction, raising concerns over short-term volatility and potential price dislocations, particularly in heavyweight stocks.
Despite weakness in benchmark indices and continued caution among foreign investors, market breadth remained relatively resilient. Midcap and Smallcap indices gained during the week, indicating continued support from domestic liquidity and stock-specific buying.
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