Foreign portfolio investors turned net buyers of Indian equities on Monday, June 16, 2026, ending a stretch of thirteen consecutive sessions during which they had withdrawn capital from the domestic stock market.
The reversal came as global risk sentiment improved on the back of diplomatic progress in the Middle East and diminishing concerns about disruption to Strait of Hormuz shipping routes. India’s large liquid equity market tends to attract foreign inflows when global volatility subsides, given its long-term growth characteristics relative to most developed markets.
The net buying figure for Monday was modest in absolute terms, but market participants treated the directional shift as meaningful after two weeks of persistent selling that had pressured rupee liquidity and weighed on mid-cap valuations. Domestic institutional investors had consistently purchased during the selling period, providing partial support.
Analysts cautioned that a single session of FPI buying does not confirm a trend reversal and that geopolitical developments and currency movements could prompt renewed outflows if the diplomatic outlook deteriorates before formal agreements are signed in the coming days.
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Sources:
https://tradingeconomics.com/india/stock-market