FII money trail: Where money went in late Aug

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Key points

• Top Trending Stocks: SBI Share Cost, Axis Bank Share Rate, HDFC Bank Share Cost, Infosys Share Rate, Wipro Share Cost, NTPC Share Rate.
• Foreign portfolio investors poured over $3.2 billion into Indian equities in August, marking their strongest monthly inflow since September 2024.
• Telecom remained under pressure, with FPIs pulling out Rs 4, 983 crore from the sector in August 2026.
• Power continued to see consistent FPI outflows, with investors pulling out Rs 2, 641 crore from the sector in August 2026.
• FPI inflows Indiaforeign investorsIndian equitiesConsumer ServicesFinancial ServicesHealthcare stocksTelecom stocksPower stocksAugust 2026 FPIforeign portfolio investment.

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FII funds trail: Where did overseas investors put capital in second half of August after $3 billion inflow?

FII funds trail: Where did overseas investors put capital in second half of August after $3 billion inflow? ETMarkets.comLast Updated: Sep 05, 2026, 02: 33: 00 PM IST.

Foreign portfolio investors poured over $3.2 billion into Indian equities in August, marking their strongest monthly inflow since September 2024. While Telecom and Power continued facing significant FPI outflows, consumer Services led buying, followed by Financial Services and Healthcare. Listen to this article in summarized format. Unlock AI Briefing and Premium Content. New Year Offer 24 Hours Left. Subscribe Now Already a member? Sign In.

Foreign investors are pouring funds back into Indian equities as inflows crossed $3.2 billion in August, the highest monthly level since September 2024, even as both benchmark indices fell more than 1% during the month. Overseas investors remained net buyers throughout sectors in the second half of August, marking a second consecutive fortnight of inflows. Ten sectors recorded FPI inflows between August 16 and August 31, according to data from the National Securities Depository (NSDL). Consumer Services: Foreign buying stays solid.

Consumer Services attracted the highest inflows during the fortnight, with Rs 5, 019 crore flowing into the sector. This took the sector's total inflows for August to Rs 8, 417 crore. When the sector recorded inflows of Rs 10, 191 crore, the buying follows a solid July. Cumulative inflows over the last three months have now reached Rs 19, 787 crore. SBI Securities attributed the sustained interest to changing consumer spending patterns. "Higher disposable income is driving a major shift toward aspirational spending, boosting high-end fashion, luxury cosmetics, and premium organized retail, " the brokerage remarked in a report. It continued that consumer preference has shifted strongly toward leisure travel, upscale dining and hospitality, helping sustain sector expansion despite broader economic cycles. Live Events.

Financial Services: FIIs rebuild exposure.

Financial Services followed closely, attracting over Rs 4, 000 crore from FIIs during the fortnight. In the rolling two-month period from June to August, the sector received total inflows of Rs 16, 570 crore. SBI Securities remarked the return of foreign buying suggests that selling pressure on the sector has eased, with investors gradually rebuilding their exposure. According to The brokerage, financial Services had recorded Rs 12, 303 crore of outflows between March and May. Notably, the Financials index has been consolidating within the 25, 671-27, 127 range for the past two and a half months. A decisive breakout on either side of this range could provide the next directional cue for the index. September has historically been a solid month for Financial Services, with the index ending higher in 12 of the last 20 years and delivering an average gain of 3.03%. Kotak Bank is the stock exhibiting a positive cost action structure, states SBI Securities. Healthcare: Inflows remain firm.

Healthcare attracted Rs 3, 021 crore during the second half of August. Over the rolling two-month period, the sector received Rs 12, 076 crore of inflows. According to SBI Securities, stocks exhibiting a positive cost action structure include Divis Lab, Glenmark, Ipca Lab, Laurus Lab, PPL Pharma and Zydus Life. Telecom: FPI selling continues.

Telecom remained under pressure, with FPIs pulling out Rs 4, 983 crore from the sector in August 2026. The selling trend has persisted since January, with FPIs offloading Rs 29, 513 crore from the sector so far this year. The sector continues to face pressure from the heavy investments required for pan-India 5G infrastructure and spectrum renewals. It are weighing on near-term free cash flows. Meanwhile, actual 5G revenue generation through ARPU expansion is scaling much slower than projected. Unresolved legacy problems, particularly ongoing disputes over Adjusted Gross Revenue (AGR) dues and statutory payout timelines, additionally remain an overhang since of the potential for sudden legal and financial liabilities for telecom operators. Telecom's domestic-revenue-heavy business model additionally leaves the sector exposed to dollar-denominated import costs, including equipment, putting pressure on net profit margins compared with export-driven sectors such as IT and Pharma. Stocks exhibiting a subdued rate action structure include Bharti Airtel, Bharti Hexacom, ITI, Indus Tower, Railtel and Route Mobile. Power: FPI interest remains subdued.

Power continued to see consistent FPI outflows, with investors pulling out Rs 2, 641 crore from the sector in August 2026. This follows significant outflows of Rs 9, 956 crore over the previous three months. State Power Distribution Firms (DISCOMs) are facing intense cash flow constraints and rising debt. Failure in tariff realisation and delays in subsidy payouts are directly limiting the capital expenditure needed for essential grid maintenance and modernisation. Notably, the sector is additionally facing higher costs, with high import duties and global supply chain disruptions increasing the cost of critical components such as solar modules, wind turbines and high-voltage transmission lines. Unpredictable weather shifts, including prolonged dry spells and irregular monsoons, have continued another layer of volatility. These conditions have created spikes in peak power demand while simultaneously disrupting hydro and wind generation, forcing utilities to purchase high-priced emergency power from the short-term spot market. Stocks exhibiting a subdued rate action structure include Adani Ensol, CESC, KPI Green, NTPC Green, NTPC, PTC India, Powergrid, Tata Power and Torrent Power. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times).

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For now, FII money trail: Where money went in late Aug remains the part of the story worth watching, and further updates are likely as more details are confirmed.