MUMBAI, Aug. 27 -- The question India's equity market spent six months asking - when would foreign money come back - got a partial answer in August.

Foreign portfolio investors have added a net $340 million to Indian equities and debt through August 27, exchange data show. That follows a net $1.1 billion inflow in July, putting India on course for its second consecutive month of positive flows after a sustained exit that began in the fourth quarter of 2025 and depressed both the Sensex and the rupee through much of the first half of 2026.

The reversal in foreign flows has not produced a clean Nifty 50 rally. The index has lost 0.5% month-to-date in August, undercut by a sharp sell-off in technology stocks tied to concerns about U.S. sof...