New Delhi, Aug. 25 -- Foreign portfolio investors (FPIs) are returning to Indian equities, but the buying is far from a broad vote of confidence.

FPIs invested more than Rs.25,000 crore in Indian stocks between 1 and 24 August, the strongest monthly inflow since September 2024, after putting Rs.20,200 crore into the market in July. If the trend holds, foreign investors will have bought Indian equities for two consecutive months for the first time this year-a sharp reversal from the record monthly outflow of nearly Rs.1.2 trillion in March.

Yet global fund managers remain wary. India has replaced Indonesia as Asia's least-preferred equity market in Bank of America's August fund manager survey, with 32% of respondents net underweight on I...