Data from the National Securities Depository (NSDL) show that overseas investors continued to be net buyers across ten Indian sectors during the fortnight ending 31 August. The cumulative inflow for the period was approximately Rs 15,000 crore, marking a second straight fortnight of net purchases after a sizeable Rs 3 billion (about Rs 25,000 crore) surge earlier in the month.
Consumer Services Lead Inflows
Consumer Services emerged as the top recipient of foreign capital, attracting Rs 5,019 crore in the second half of August. The sector’s total inflow for the full month reached Rs 8,417 crore, adding to a strong July that saw Rs 10,191 crore flow in. Over the last three months, cumulative foreign purchases in Consumer Services have risen to Rs 19,787 crore.
SBI Securities linked the sustained interest to a shift in consumer spending patterns. In a brokerage report the firm noted, “Higher disposable income is driving a major shift toward aspirational spending, boosting high‑end fashion, luxury cosmetics, and premium organized retail.” The report also highlighted growing demand for leisure travel, upscale dining and hospitality, which it said is helping the sector grow despite broader economic cycles.
Financial Services and Healthcare Maintain Momentum
Financial Services followed closely, pulling in just over Rs 4,000 crore during the same fortnight. When viewed over the rolling two‑month window from June to August, the sector has accumulated Rs 16,570 crore of foreign inflows. Historical data cited by the source indicates that September has traditionally been a strong month for Financial Services, with the index ending higher in 12 of the last 20 years and delivering an average gain of 3.03%.
SBI Securities singled out Kotak Bank as a stock exhibiting a positive price‑action structure within the Financial Services space. In the Healthcare segment, foreign investors added Rs 3,021 crore in the second half of August, bringing the two‑month total to Rs 12,076 crore. The brokerage identified several stocks with positive price‑action structures, including Divis Lab, Glenmark, Ipca Lab, Laurus Lab, PPL Pharma and Zydus Life.
Telecom and Power Sectors Face Outflows
In contrast, the Telecom sector continued to see foreign selling pressure. Foreign Portfolio Investors (FPIs) withdrew Rs 4,983 crore from telecom in August 2026, extending a sell‑off that began in January and has amounted to Rs 29,513 crore for the year to date. Analysts attributed the weakness to heavy capital requirements for pan‑India 5G infrastructure and spectrum renewals, which are straining near‑term free cash flows. Moreover, actual 5G revenue generation through ARPU growth is progressing much slower than projected.
Additional challenges for telecom include unresolved legacy issues such as Adjusted Gross Revenue (AGR) disputes and statutory payout timelines, which pose the risk of sudden legal and financial liabilities. The sector’s reliance on a domestic‑revenue‑heavy model also makes it vulnerable to dollar‑denominated import costs for equipment, compressing net profit margins relative to export‑driven industries like IT and pharmaceuticals. Stocks flagged as having a weak price‑action structure include Bharti Airtel, Bharti Hexacom, ITI, Indus Tower, Railtel and Route Mobile.
The Power sector also recorded consistent outflows, with FPIs pulling Rs 2,641 crore in August 2026. This follows larger outflows of Rs 9,956 crore over the preceding three months. State Distribution Companies (DISCOMs) are grappling with cash‑flow constraints and rising debt, compounded by tariff realization failures and delayed subsidy payouts that limit capital expenditure for grid maintenance and modernization.
Higher import duties and global supply‑chain disruptions have increased the cost of critical components such as solar modules, wind turbines and high‑voltage transmission lines. Unpredictable weather patterns—prolonged dry spells and irregular monsoons—have added volatility by creating spikes in peak power demand while disrupting hydro and wind generation, forcing utilities to buy expensive emergency power from the short‑term spot market. Stocks identified with weak price‑action structures include Adani Ensol, CESC, KPI Green, NTPC Green, NTPC, PTC India, Powergrid, Tata Power and Torrent Power.
Overall, the fortnightly data underscore a divergent landscape for foreign investors in India. While consumer‑driven sectors benefit from higher disposable incomes and aspirational spending, capital‑intensive industries such as telecom and power continue to face structural headwinds that dampen foreign appetite. The net inflow of roughly Rs 15,000 crore across ten sectors suggests that, despite sectoral challenges, overseas investors remain broadly optimistic about the Indian market’s growth trajectory.
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