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Sectoral churning is evident as FPIs returns to Indian markets

ICICIdirect Research 24 Jul 2026 DISCLAIMER

Foreign Portfolio Investors (FPIs) strongly reversed their previous months' selling trend, pumping ~ ₹15k crore into Indian equities during the first fortnight of July. It was built upon a buying that had already begun in the second fortnight of June, as easing geopolitical tensions encouraged foreign funds to selectively return to the market. Including the second fortnight of June, FPIs have bought~30k crores in Indian equities. Even in the recent uptick in energy prices, FPIs have remained largely net buyers in Indian markets as their net figure has remained positive post 15th July as well. Hence, we believe that the recent weakness may be shallow in nature and we can expect strong rebound in the coming sessions with any dip in energy prices.
According to NSDL data for the first half of the month, the primary sectors capturing these preferred inflows included Consumer Services at ~ ₹7k crore, Metals & Mining at ~₹6k crore and Healthcare at ~₹4k crore. Additional capital was deployed into Consumer Durables ~₹2.5k crore, Realty ~₹2k crore and Financial Services ~₹2k crore. On the other hand, Automobile and Capital Goods names saw outflows of ~7k crore and 2.5k crore respectively.

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