FPIs return after four-month exodus, but is the worst really over?

All the while, domestic institutional investors (DIIs) have been absorbing the bulk of FPI sell-offs. Year-to-date, DIIs have invested a littleover ₹5 trillion, easily offsetting net FPI outflows of ₹2.58 trillion. In July alone, domestic institutions pumped in around ₹35,000 crore. This momentum is anchored by strong retail participation—driven by monthly SIP inflows consistently topping ₹25,000 crore. On the other hand, direct equity investments from retail investors exceeded ₹36,000 crore year-to-date.