Foreign Portfolio Investors (FPIs) invested Rs 19,675 crore in Indian equities during the first fortnight of February, marking a sharp reversal after three consecutive months of heavy outflows, buoyed by the US-India trade deal and easing global macroeconomic concerns.
Depository data show that FPIs had withdrawn Rs 35,962 crore in January, Rs 22,611 crore in December and Rs 3,765 crore in November. Overall in 2025, foreign investors have pulled out a net Rs 1.66 lakh crore (USD 18.9 billion) from equities, one of the steepest phases of selling in recent years.
The outflows were driven by currency volatility, global trade tensions, concerns over potential US tariffs and stretched valuations. According to the data, FPIs invested Rs 19,675 crore in equities till 13 February.
Himanshu Srivastava, Principal Manager-Research at Morningstar Investment Research India, said the renewed buying was supported by easing global macro concerns, particularly softer US inflation data, which improved sentiment around the interest rate cycle and helped stabilise bond yields and the US dollar.
“This improved risk appetite toward emerging markets, including India,” Srivastava said, adding that steady domestic macro indicators, stable inflation and broadly in-line corporate earnings reinforced confidence in India’s growth outlook.
Also read: Foreign investors pull out USD 2.5-bn from equities in Jan
Vaqarjaved Khan, Senior Fundamental Analyst at Angel One, attributed the turnaround to multiple triggers. “The inflow was triggered by the US-India trade deal, the supportive Union Budget 2026 with fiscal stimulus, easing global trade uncertainties, and stable domestic rates,” he said.
Market data indicate that FPIs were net buyers on seven of the eleven trading sessions in February up to the 13th, turning sellers on only four occasions.
However, they have net sold equities worth Rs 1,374 crore so far this month.
The overall figure was weighed down by a sharp sell-off of Rs 7,395 crore on 13 February, when the Nifty fell by 336 points. The week also witnessed heavy selling in information technology stocks amid what analysts described as the “Anthropic shock”.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said it was likely that FPIs offloaded IT stocks aggressively in the cash market, as the IT index declined 8.2 per cent during the week ended 13 February.
Despite the recent inflows, analysts caution that foreign investment trends remain sensitive to global cues, particularly US monetary policy signals and developments in international trade.
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