Foreign portfolio investors (FPIs) have shown a resurgence in Indian equity markets in early February, injecting Rs 19,675 crore in the first half of the month. This renewed interest follows three consecutive months of significant selling and is influenced by the US-India trade agreement and improving global economic conditions.
Data from depositories reveals that FPIs had withdrawn substantial amounts in the preceding months. They pulled out Rs 35,962 crore in January, Rs 22,611 crore in December, and Rs 3,765 crore in November. These continuous outflows had created pressure on domestic equities, reflecting a cautious approach among global investors.
In 2025 so far, FPIs have withdrawn a net Rs 1.66 lakh crore, approximately $18.9 billion, from Indian equities. This period marks one of the weakest phases for foreign inflows in recent times, driven by currency fluctuations, global trade tensions, concerns regarding US tariffs, and high equity valuations in the Indian market.
Despite the challenging scenario, February has witnessed positive developments. FPIs have been net buyers in seven out of eleven trading sessions until February 13, turning into sellers only on four occasions. However, the overall data indicates that FPIs have still sold equities worth Rs 1,374 crore this month.
Market experts suggest that the recent inflows signal an enhanced confidence level among foreign investors. Yet, the sustained stability in global markets and clarity on trade and monetary policies are crucial for maintaining this positive momentum.
Indian stock markets closed significantly lower on Friday, February 13, impacted by weak global cues and growing concerns about artificial intelligence’s potential impact on the global economy. The BSE benchmark index dropped by 1,048 points, or 1.25%, to end at 82,626.76, while the broader NSE index also declined by 336 points, or 1.30%, settling at 25,471.10.
