In July and August, FPIs recorded net purchases of $2.45 billion
GS3Economy · S&T · Environment · Security· Capital markets & SEBI· Prelims·
Why in news
FPIs and DIIs recorded significant net purchases in Indian markets during July and August, signaling a shift from previous selling trends.
Background
FPIs recorded net purchases of $2.45 billion in July and $2.7 billion in August. DIIs bought $3.65 billion and $4.6 billion respectively, though at 50% below their six-month average. Total market issuances (IPOs, QIPs, OFS) exceeded ₹1.15 lakh crore.
Facts for Prelims
- FactFPI: Foreign Portfolio Investors are entities that invest in financial assets like stocks and bonds.
- FactDII: Domestic Institutional Investors include mutual funds, insurance companies, and pension funds.
- FactOFS: Offer for Sale is a method used by promoters to sell their stake in a listed company.
- FactQIP: Qualified Institutional Placement is a method for companies to raise capital from institutional buyers.
For Mains
Q. Analyze the factors influencing the volatility of Foreign Portfolio Investment (FPI) in Indian capital markets and its impact on macroeconomic stability.
Dimensions to cover in your answer
- geopolitical uncertainties
- investor sentiment
- market liquidity
- impact on currency stability
Keywords: capital flight · portfolio investment · market volatility · liquidity · geopolitical risk
More Economy notes
- RBI faces high hedging costs, expects good returns on US treasury investments · 4 September 2026
- NSE Set to Launch ₹31,000 Crore IPO, Second-Biggest in India After Jio Platforms · 4 September 2026
- HUDCO to fund Bihar’s industrial parks with 25-year flexible loans · 3 September 2026
- NPCI may allow AI agents for small UPI payments at Global Fintech Fest · 3 September 2026
- Manoj Joshi, Secretary of the Department of Pharmaceuticals, inaugurated Dentic World · 3 September 2026
- Central bank fights rupee dip, state banks sell dollars aggressively · 3 September 2026
Something wrong, or something missing?
Spotted a mistake in a note, or want a topic, format or PDF that would help your preparation? Write to us. We read every mail and fix errors fast.
This note is generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.