Foreign Portfolio Investors (FPIs) turned net buyers in Indian Information Technology stocks during July, ending a continuous multi-month selling spree observed since the beginning of 2026. According to data from the National Securities Depository Limited (NSDL), global institutional investors poured ₹3,358 crore into the IT sector throughout July, marking the first positive monthly net flow into the space this year.
The resurgence in foreign inflows reflects a gradual shift in investor sentiment following stable quarter-one earnings from major technology majors, along with signs of stabilizing IT spending in key Western markets. Analysts noted that steady deal wins, robust client retention rates, and reasonable valuation corrections after months of sustained selling prompted offshore funds to re-enter quality IT names. Prior to July, FPIs had consistently pulled out funds from Indian tech equities due to elevated US interest rates, geopolitical uncertainties, and concerns over delayed enterprise cloud and digital transformation budgets.
The turnaround in IT inflows also coincided with broader FPI buying across Indian equities, driven by lower volatility and a favorable macroeconomic backdrop. Market experts suggest that while discretionary IT spending remains somewhat measured globally, foreign institutional interest could remain supportive if upcoming global central bank rate moves continue to favor emerging market equities.
