FPIs Invest ₹19,675 Crore in Early February
New Delhi, February 15: Foreign Portfolio Investors have staged a significant turnaround in February, injecting ₹19,675 crore into Indian equities during the first fortnight of the month. The revival in inflows has been supported by the US India trade deal and easing global macroeconomic concerns.The renewed buying momentum comes after three consecutive months of sustained selling by foreign investors.
Three Months of Persistent Outflows
According to data from depositories, FPIs withdrew ₹35,962 crore in January, ₹22,611 crore in December, and ₹3,765 crore in November.Overall, in 2024, FPIs pulled out a net ₹1.66 lakh crore, equivalent to USD 18.9 billion, from Indian equities. The prolonged selling was driven by volatile currency movements, global trade tensions, concerns over potential US tariffs, and stretched equity valuations.
February Data Shows Mixed Trend
Data shows that FPIs invested ₹19,675 crore in February up to February 13. They were net buyers in seven of the eleven trading sessions during this period, turning sellers on only four occasions.Despite this, the overall data indicates that FPIs have net sold equities worth ₹1,374 crore so far this month. The figure was influenced by a sharp sell off of ₹7,395 crore on February 13, when the Nifty declined by 336 points.
Global and Domestic Factors Supporting Inflows
Himanshu Srivastava, Principal Manager Research at Morningstar Investment Research India, said the recent buying was supported by easing global macroeconomic concerns, particularly softer US inflation data. This led to positive sentiment toward the interest rate cycle, helping stabilize bond yields and the US dollar.The improvement in global conditions enhanced risk appetite toward emerging markets, including India.
On the domestic front, steady macroeconomic indicators, stable inflation, and broadly in line corporate earnings reinforced confidence in India’s growth outlook.
IT Sector Drag and Market Volatility
Vaqarjaved Khan, Senior Fundamental Analyst at Angel One, said the inflows were triggered by the US India trade deal, the supportive Union Budget 2026 with fiscal stimulus, easing global trade uncertainties, and stable domestic rates.However, the week ended February 13 witnessed heavy selling in IT stocks amid the so called Anthropic shock. It is likely that FPIs aggressively sold IT stocks in the cash market, as the IT index plunged 8.2 per cent during the week.
The sharp selling on February 13, coupled with weakness in IT counters, temporarily skewed the overall monthly numbers despite the broader buying trend seen earlier in the month.
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