FPIs turn net buyers in February; invest ₹8,100 crore in 1st week on US trade deal

The inflows follow sustained withdrawals in recent months, with FPIs pulling out ₹35,962 crore in January, ₹22,611 crore in December, and ₹3,765 crore in November, data with the depositories showed.

Overall, in 2025, FPIs pulled out a net ₹1.66 lakh crore ($18.9 billion) from Indian equities, marking one of the worst periods for foreign flows. The selling was driven by volatile currency movements, global trade tensions, concerns over potential US tariffs, and stretched equity valuations.

According to the data, FPIs invested ₹8,129 crore in this month (till February 6).

Himanshu Srivastava, principal manager of research at Morningstar Investment Research India, said the recent buying reflects improving risk appetite and renewed confidence in India's growth outlook.

"The sentiment was supported by easing global uncertainties, stability in domestic interest rate expectations, and optimism around India-US trade and policy developments," Srivastava added.

The turnaround contrasts sharply with January's outflows, when FPIs exited Indian markets amid a global risk-off environment and elevated US bond yields.

Market participants remain cautiously optimistic. Further inflows could materialise if corporate earnings momentum continues and global trade tensions remain contained, although lingering rupee weakness, elevated valuations, and potential shifts in US policy could limit upside, Khan said.

Week Ahead: Things to track

Inflation data, trading activity of foreign investors, and global trends would dictate sentiment in the stock market this week, according to analysts.

Besides, geopolitical developments and Q3 earnings will also guide market movement during the week.

From the Q3 earnings space, Ashok Leyland, ONGC, Bajaj Electricals and Eicher Motors will also be announcing their results during the week.

India and the US on Saturday announced they have reached a framework for an interim trade agreement under which both sides will reduce import duties on a number of goods to boost two-way trade.

While the US will reduce tariffs on Indian goods to 18% from the present 50%, India will eliminate or cut down import duties on all US industrial goods and a wide range of American food and agricultural products, including dried distillers' grains, red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine, and spirits.