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Below the quote on FPI from Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

"FPI selling which began in early August continues. The consolidated NSDL data shows the August FPI investment through 26th at Rs 10689 crores. But this figure includes investment through the primary market and bulk deals, which have been gathering momentum recently. In the cash market FPIs sold stocks for Rs 15817 crores through 26th August. Strength in the dollar index at well around 104 and the US 10-year bond yield remaining around 4.25 % are short-term negatives for FPI flows to emerging markets like India.

An important feature of FPI investment is their consistent buying  in capital goods. And, of late, they have started selling in financials.  
In view of the strong dollar and rising US bond yields, FPIs are likely to continue selling in the cash market in the near-term. The poor monsoon in August and its skewed spatial distribution may keep inflation elevated, and this is becoming an area of concern impacting sentiments in the market. This might impact FPI investment, too."

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