FPI inflows hit 17-month high at Rs 22,615-cr in Feb

New Delhi: Foreign portfolio investors (FPIs) infused Rs 22,615 crore into Indian equities, marking the highest monthly inflow in 17 months, driven by the interim India-US trade deal, correction in domestic market valuations and robust third-quarter corporate earnings.

The latest buying follows three consecutive months of heavy selling. FPIs pulled out Rs 35,962 crore in January, Rs 22,611 crore in December and Rs 3,765 crore in November, according to data from the depositories.

Overall, FPIs have withdrawn a net Rs 1.66 lakh crore ($18.9 billion) from Indian equities in 2025, making it one of the worst periods for foreign flows. The outflows were triggered by volatile currency movements, global trade tensions, concerns over potential US tariffs and stretched equity valuations.

According to the data, FPIs invested Rs 22,615 crore in February. This was the highest monthly inflow since September 2024, when they had invested Rs 57,724 crore.

The inflow was driven by secondary market buying, signalling renewed foreign confidence post-2025 outflows, said Vinit Bolinjkar, Head of Research at Ventura.

Javed Khan, Senior Fundamental Analyst at Angel One Ltd, said three key catalysts supported the inflow. These included India-US trade agreements and corrections in India’s market valuation. Additionally, Q3 FY26 earnings grew 14.7 per cent, suggesting confidence in the growth narrative.

Echoing similar views, Varun Gupta, CEO of Groww Mutual Fund, attributed the renewed inflows to improving earnings momentum, moderation in valuations from peak levels and early signs of easing trade uncertainty, with India concluding multiple FTAs, including those with the EU and UK.