{"id":1946,"date":"2026-09-06T08:34:04","date_gmt":"2026-09-06T08:34:04","guid":{"rendered":"https:\/\/newsraise.com\/in\/2026\/09\/06\/foreign-investors-fortnightly-inflows-august-second-half\/"},"modified":"2026-09-06T08:34:04","modified_gmt":"2026-09-06T08:34:04","slug":"foreign-investors-fortnightly-inflows-august-second-half","status":"publish","type":"post","link":"https:\/\/newsraise.com\/in\/2026\/09\/06\/foreign-investors-fortnightly-inflows-august-second-half\/","title":{"rendered":"Foreign investors add Rs 15,000 crore to Indian sectors in August"},"content":{"rendered":"\n<!-- Quick Adsense WordPress Plugin: http:\/\/quickadsense.com\/ -->\n<div class=\"9fece8afa224fd09e54b043d0febfb58\" data-index=\"1\" style=\"float: none; margin:10px 0 10px 0; text-align:center;\">\n<script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\r\n<!-- NR ATF -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-8898941184964366\"\r\n     data-ad-slot=\"4839033563\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\n<\/div>\n<p>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\u202fbillion (about Rs 25,000 crore) surge earlier in the month.<\/p>\n<h2>Consumer Services Lead Inflows<\/h2>\n<p>Consumer Services emerged as the top recipient of foreign capital, attracting Rs 5,019 crore in the second half of August. The sector\u2019s 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.<\/p>\n<p>SBI Securities linked the sustained interest to a shift in consumer spending patterns. In a brokerage report the firm noted, \u201cHigher disposable income is driving a major shift toward aspirational spending, boosting high\u2011end fashion, luxury cosmetics, and premium organized retail.\u201d 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.<\/p>\n<h2>Financial Services and Healthcare Maintain Momentum<\/h2>\n<p>Financial Services followed closely, pulling in just over Rs 4,000 crore during the same fortnight. When viewed over the rolling two\u2011month 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%.<\/p>\n<p>SBI Securities singled out Kotak Bank as a stock exhibiting a positive price\u2011action 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\u2011month total to Rs 12,076 crore. The brokerage identified several stocks with positive price\u2011action structures, including Divis Lab, Glenmark, Ipca Lab, Laurus Lab, PPL Pharma and Zydus Life.<\/p>\n<h2>Telecom and Power Sectors Face Outflows<\/h2>\n<p>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\u2011off 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\u2011India 5G infrastructure and spectrum renewals, which are straining near\u2011term free cash flows. Moreover, actual 5G revenue generation through ARPU growth is progressing much slower than projected.<\/p>\n<p>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\u2019s reliance on a domestic\u2011revenue\u2011heavy model also makes it vulnerable to dollar\u2011denominated import costs for equipment, compressing net profit margins relative to export\u2011driven industries like IT and pharmaceuticals. Stocks flagged as having a weak price\u2011action structure include Bharti Airtel, Bharti Hexacom, ITI, Indus Tower, Railtel and Route Mobile.<\/p>\n<p>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\u2011flow constraints and rising debt, compounded by tariff realization failures and delayed subsidy payouts that limit capital expenditure for grid maintenance and modernization.<\/p>\n<p>Higher import duties and global supply\u2011chain disruptions have increased the cost of critical components such as solar modules, wind turbines and high\u2011voltage transmission lines. Unpredictable weather patterns\u2014prolonged dry spells and irregular monsoons\u2014have 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\u2011term spot market. Stocks identified with weak price\u2011action structures include Adani Ensol, CESC, KPI Green, NTPC Green, NTPC, PTC India, Powergrid, Tata Power and Torrent Power.<\/p>\n<p>Overall, the fortnightly data underscore a divergent landscape for foreign investors in India. While consumer\u2011driven sectors benefit from higher disposable incomes and aspirational spending, capital\u2011intensive 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\u2019s growth trajectory.<\/p>\n\n<div style=\"font-size: 0px; height: 0px; line-height: 0px; margin: 0; padding: 0; clear: both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>Foreign investors net bought across ten Indian sectors in the second half of August, injecting roughly Rs 15,000 crore, led by consumer services.<\/p>\n","protected":false},"author":3,"featured_media":1947,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[299],"tags":[1992,1989,1993,1759,1991,1990],"class_list":["post-1946","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-consumer-services","tag-fii","tag-financial-services","tag-foreign-investment","tag-indian-market","tag-sector-inflows","entry"],"_links":{"self":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/posts\/1946","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/comments?post=1946"}],"version-history":[{"count":0,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/posts\/1946\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/media\/1947"}],"wp:attachment":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/media?parent=1946"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/categories?post=1946"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/tags?post=1946"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}