Mumbai: Foreign portfolio investors (FPIs) have made a strong comeback to Indian equity markets in early February, investing Rs 19,675 crore in the first fortnight of the month.
The renewed interest comes after three straight months of heavy selling and is being supported by the US-India trade deal and easing global macroeconomic concerns.
According to data from depositories, FPIs had pulled out large sums in the previous months.
They withdrew Rs 35,962 crore in January, Rs 22,611 crore in December and Rs 3,765 crore in November.
The sustained outflows had put pressure on domestic equities and reflected cautious sentiment among global investors.
So far in 2025, FPIs have pulled out a net Rs 1.66 lakh crore, or about $18.9 billion, from Indian equities.
This marks one of the weakest periods for foreign inflows in recent years. The selling was largely driven by volatile currency movements, global trade tensions, concerns over possible US tariffs and high equity valuations in the Indian market.
However, February has shown signs of improvement. FPIs were net buyers on seven of the eleven trading sessions till February 13 and turned sellers only on four occasions.
Despite the strong buying seen on most days, overall data indicates that FPIs have still net sold equities worth Rs 1,374 crore so far this month.
Market participants believe that the recent inflows signal improving confidence among foreign investors, but sustained stability in global markets and clarity on trade and monetary policies will be key to maintaining the momentum.
Meanwhile, Indian stock markets ended sharply lower on Friday, (February 13), weighed down by weak global cues and rising worries over artificial intelligence and its possible impact on the global economy.
The BSE benchmark index fell 1,048 points, or 1.25 per cent, to close at 82,626.76. The broader NSE index also slipped 336 points, or 1.30 per cent, to settle at 25,471.10.
(IANS)
