FPIs double down on Indian debt, keep equity bets on hold

Foreign portfolio investors (FPIs) pumped a record Rs 41,773 crore into Indian debt under the fully accessible route in June, while withdrawing Rs 49,340 crore from local equities. YTD net figures show debt inflows of Rs 51,178 crore against equity outflows of Rs 2.73 lakh crore. The Nifty 50 has fallen over 8 percent in 2026, with the Nifty IT index slumping nearly 30 percent, weighed down by FPI selling, geopolitical uncertainty and weak earnings. Expectations of Indian bonds being included in the Bloomberg global aggregate index at the July review, along with tax benefits and expanding investable universe, are driving sovereign debt inflows even as the rupee recovered from record lows to 95.21.