Have foreign investors finally started coming back to Indian shares

Foreign investors are buying again. They put Rs 12,921 crore into Indian equities in the first week of August after Rs 20,200 crore in July, ending four heavy months of selling that saw Rs 1.17 lakh crore leave in March alone. Domestic funds kept buying steadily throughout.

Three things helped. Crude prices softened, the rupee steadied, and hopes of American rate cuts improved sentiment. Foreign ownership of Indian shares is also low, leaving room for fresh money, and buying has come through the secondary market rather than only new listings.

Keep perspective though. Foreign investors remain net sellers of Rs 2.41 lakh crore for the year. Two good months do not reverse that. Domestic money from your SIPs has quietly become the market’s real support. So keep contributing every month and let flows swing without changing your plan.