Mumbai: Foreign portfolio investors (FPIs) have returned to Indian stock markets in early February. In the first half of the month, they invested Rs 19,675 crore in equities.
This comes after three continuous months of heavy selling. Improved global conditions and the US–India trade deal have supported investor confidence.
Heavy Selling In Previous Months
Before February, FPIs had been pulling money out of Indian markets.
- January: Rs 35,962 crore withdrawn
- December: Rs 22,611 crore withdrawn
- November: Rs 3,765 crore withdrawn
In total, FPIs have pulled out around Rs 1.66 lakh crore in 2025 so far. This has been one of the weakest periods for foreign inflows in recent years.
The selling was mainly due to global trade tensions, fears of US tariffs, volatile currency movements and high valuations in Indian markets.
Mixed Trend In February
Although February started with strong buying of Rs 19,675 crore in the first fortnight, overall data shows FPIs are still net sellers of Rs 1,374 crore so far this month.
They were net buyers on seven out of eleven trading sessions till February 13, and sellers on four days.
This shows that while confidence is improving, investors are still cautious.
Markets Remain Under Pressure
Despite fresh FPI inflows, Indian markets ended sharply lower on Friday.
The BSE Sensex fell 1,048 points to close at 82,626.76.
The NSE Nifty 50 dropped 336 points to settle at 25,471.10.
Weak global cues and concerns about artificial intelligence impacting global growth affected sentiment.
What Lies Ahead?
Market experts say sustained global stability, clarity on trade policies and monetary decisions will be important to maintain FPI interest.
