India Equity Strategy: Flows & Positioning in Jun‘26 Q - Flis trim Financials; DMFs add Discretionary/Healthcare; US$115bn potential foreign inflows

Research evidence excerpt

India Equity Strategy: Flows & Positioning in Jun‘26 Q - Flis trim Financials; DMFs add Discretionary/Healthcare; US$115bn potential foreign inflows

J P M O R G A N Global Markets Strategy

24 July 2026

India Equity Strategy

Flows & Positioning in Jun’26 Q - FIIs trim Financials;

DMFs add Discretionary/Healthcare; US$115bn

potential foreign inflows

Foreign investors aggressively reversed course in the second half of June, injecting Equity Macro Research

ACaround $3.3bn over the last 27 trading sessions driven by tactical rotation to non-AI Rajiv Batra

cohort, falling oil prices in 2Q, policy measures to stabilize INR and robust (65) 6882-8151

earnings expectations (ex-energy sector). Consumer services, including e- rajiv.j.batra@jpmorgan.com

commerce and hotels, attracted the highest foreign buying during the first half of J.P. Morgan Securities Singapore Private Limited

July, followed by Metals and Mining and Healthcare (Figure 80FPIflows-FinancialsandAutosfacethebruntofforeignselingthisyear). We believe the Rushit Mehta AC

selling pressure will continue to ease as foreign ownership has come down to (9122) 6157-3711

rushit.mehta@jpmchase.com

15.8%, which is a 15-year low (Figure 2DIownershipcontinuestoincrease,whileFIownershipcontinuestofal). At the same time, FIIs appear to be J.P. Morgan India Private Limited, J.P. Morgan

maintaining a preference for mid- and small-cap segments to capitalize on higher- Tower, Santacruz(E), Mumbai - 400098, SEBI

Registration: INH000001873, (91-22) 6157-3000.

growth sectors and longer runway for expansion. If foreign LO investor groups

were to neutralize their underweight in Indian equities, this could translate into

potential net inflows of around $115bn. During the Jun’26 quarter, FIIs trimmed