FPIs influx hit 17-month excessive at Rs 22,615 cr in Feb
The newest shopping for follows three consecutive months of heavy promoting. FPIs pulled out Rs 35,962 crore in January, Rs 22,611 crore in December and Rs 3,765 crore in November, in response to knowledge from the depositories.
Total, FPIs have withdrawn a internet Rs 1.66 lakh crore (USD 18.9 billion) from Indian equities in 2025, making it one of many worst intervals for overseas flows. The outflows have been triggered by risky foreign money actions, international commerce tensions, considerations over potential US tariffs and stretched fairness valuations.
In response to the information, FPIs invested Rs 22,615 crore in February. This was the best month-to-month influx since September 2024, after they had invested Rs 57,724 crore.
The influx was pushed by secondary market shopping for, signalling renewed overseas confidence post-2025 outflows, mentioned Vinit Bolinjkar, Head of Analysis at Ventura.
Javed Khan, Senior Basic Analyst at Angel One Ltd, mentioned three key catalysts supported the influx. These included India-US commerce agreements and corrections in India’s market valuation. Moreover, Q3 FY26 earnings grew 14.7 per cent, suggesting confidence within the development narrative.
Echoing related views, Varun Gupta, CEO of groww Mutual Fund, attributed the renewed inflows to enhancing earnings momentum, moderation in valuations from peak ranges and early indicators of easing commerce uncertainty, with India concluding a number of FTAs, together with these with the EU and UK.Sectorally, FPIs have been aggressive patrons in financials and capital items, whereas persevering with to pare publicity to the IT sector. The section noticed outflows of Rs 10,956 crore amid considerations over AI-led disruption.
“FPIs had bought closely in IT shares as a result of Anthropic shock and continued weak spot within the section. Nevertheless, they turned patrons in monetary providers and capital items,” mentioned VK Vijayakumar, Chief Funding Strategist at Geojit Investments.
Trying forward, Khan mentioned March flows are anticipated to stay constructive. This fall earnings will decide whether or not 15 per cent earnings development in FY27 is achievable, whereas rupee stability beneath Rs 91 to the greenback offers consolation on returns.
Vijayakumar mentioned FPIs are more likely to undertake a wait-and-watch method earlier than growing publicity to rising markets. Nevertheless, enhancing GDP development prospects and a wholesome company earnings outlook for FY27 bode properly for medium-term flows.
In the meantime, the continuing battle within the Center East has triggered a risk-on sentiment in monetary markets. Its affect on crude costs and foreign money actions stays a key monitorable, he added.