Mumbai, Sept. 8 -- The upcoming festive season appears to be prompting foreign investors to position early for a potential pickup in demand, particularly in autos and consumer durables, according to market participants.

Data from National Securities Depository Ltd (NSDL) showed that the automobile and auto component sector saw foreign portfolio investor (FPI) buying of $326 million in August 2026, ending a five-month selling streak. The sector last saw buying in February, when FPIs invested $394 million.

Market participants see the festive season as a near-term trigger for investors warming up to autos and consumer durables again, but believe the improvement is more fundamental than just a seasonal trade.

"Yes, the upcoming festive sea...