FPIs turn bullish on financials in August

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Key points

• After investing more than ₹20, 200 crore in July, according to NSDL data, foreign investors net purchased shares worth ₹16, 621 crore throughout sectors during August 1-15.
• Despite remaining net sellers of financial services stocks in July, the tide turned for the sector this time around, with buying seen for ₹6, 535 crore.
• While nine saw outflows, of the 24 sectors tracked, 14 obtained flows.
• Overseas investors indicated robust buying in early August, marking four consecutive fortnights of inflows.
• FPIs turn bullish on financials, autos and IT in first half of August.

What happened

FPIs turn bullish on financials, autos and IT in first half of August.

FPIs turn bullish on financials, autos and IT in first half of August. By Kairavi Lukka, ET BureauLast Updated: Aug 21, 2026, 06: 01: 00 AM IST.

Overseas investors indicated robust buying in early August, marking four consecutive fortnights of inflows. Financial services and automobiles attracted the highest foreign investment during this period. Broader markets demonstrated resilience, with investors favoring mid-cap names within key sectors. Foreign investors net purchased shares worth ₹16, 621 crore throughout sectors during August 1-15. This trend signals a potential turnaround phase in sentiment towards India. Listen to this article in summarized format. Unlock AI Briefing and Premium Content. Subscribe Now Already a member? Sign In.

The key numbers

Mumbai: Overseas investors remained net buyers throughout sectors in the first half of August, marking the fourth consecutive fortnight of inflows and the strongest run of purchases for a two-week period since early February, NSDL data demonstrated. Financial services attracted the highest foreign buying during the period, followed by automobiles & auto components' stocks, consumer services, healthcare and information technology firms. In contrast, telecom, capital goods, power and realty witnessed the highest outflows.

While nine saw outflows, of the 24 sectors tracked, 14 obtained flows. "Although the Nifty has pulled back almost 500 points from its recent highs due to rising bond yields, broader markets have demonstrated notable resilience, remaining largely flat. This performance signals a strategic shift among FIIs: rather than allocating capital to large-cap heavyweights, they appear to be favouring mid-cap names within key sectors, " remarked Pankaj Pandey, head of fundamental research, ICICI Direct. Funds trail ₹16, 621 cr foreign capital flowed into stocks during Aug 1-15, with financials taking ₹6, 535 cr; analysts see sector as undervalued with a 3 to 5-year expansion visibility.

After investing more than ₹20, 200 crore in July, according to NSDL data, foreign investors net purchased shares worth ₹16, 621 crore throughout sectors during August 1-15. Live Events.

Despite remaining net sellers of financial services stocks in July, the tide turned for the sector this time around, with buying seen for ₹6, 535 crore. IT stocks additionally saw buying for the third straight fortnight. "Financial services is one of the sectors which has particularly clear expansion visibility over the next 3-5 years and is significantly undervalued. It can be a pick for the long term oriented FPIs, " remarked Vikas Gupta, CEO at OmniScience Capital. "IT seems more like a tactical trading bet given the huge uncertainty in terms of manpower, revenues and earnings predictably from a 5 year perspective."

The bottom line

In short, fPIs turn bullish on financials in August is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.