Mumbai, February 15 Foreign portfolio investors have staged a notable comeback in early February, pumping ₹19,675 crore into Indian equity markets during the first fortnight of the month. The renewed buying interest follows three consecutive months of heavy outflows and reflects improving global sentiment.
Strong Buying After Three Months of Selling
The February inflows mark a sharp reversal from the sustained withdrawals witnessed in recent months. According to depository data, FPIs had pulled out ₹35,962 crore in January, ₹22,611 crore in December, and ₹3,765 crore in November.These persistent outflows had weighed on domestic equity markets and signaled caution among global investors amid heightened volatility.
In 2025 so far, FPIs have withdrawn a net ₹1.66 lakh crore, equivalent to about $18.9 billion, from Indian equities. This period stands out as one of the weakest phases for foreign investment in recent years. The selling pressure was largely attributed to volatile currency movements, global trade tensions, concerns over possible US tariffs, and elevated equity valuations in the Indian market.
February Data Signals Improving Sentiment
Despite the broader trend of outflows in 2025, early February data shows encouraging signs. FPIs were net buyers in seven out of eleven trading sessions until February 13 and turned sellers only on four occasions.However, overall figures indicate that FPIs have still net sold equities worth ₹1,374 crore so far this month, suggesting that while daily buying activity has strengthened, cumulative flows remain slightly negative.
Market participants believe the recent inflows point to improving confidence among foreign investors. They note that sustained stability in global markets and greater clarity on trade and monetary policies will be critical to maintaining the momentum in FPI investments.
Indian Markets Close Sharply Lower on Friday
Even as foreign inflows showed signs of recovery, Indian stock markets ended sharply lower on Friday, February 13, amid weak global cues and rising concerns related to artificial intelligence and its potential impact on the global economy.The BSE benchmark index declined 1,048 points, or 1.25 per cent, to close at 82,626.76. The broader NSE index fell 336 points, or 1.30 per cent, to settle at 25,471.10.
The contrasting trends between improving FPI activity and market volatility underscore the cautious undertone prevailing in the markets as investors closely track global developments and policy signals.
Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.