FPIs turn net buyers in Feb; investors add Rs8,100-cr in a week on US trade deal

After three consecutive months of heavy selling, foreign portfolio investors (FPIs) turned net buyers in the first week of February, infusing more than Rs8,100 crore in Indian equities, aided by improving risk sentiment, along with a trade deal with the US.

The inflows follow sustained withdrawals in recent months, with FPIs pulling out Rs35,962 crore in January, Rs22,611 crore in December, and Rs3,765 crore in November, data with the depositories showed. Overall, in 2025, FPIs pulled out a net Rs1.66 lakh crore ($18.9 billion) from Indian equities, marking one of the worst periods for foreign flows. The selling was driven by volatile currency movements, global trade tensions, concerns over potential US tariffs and stretched equity valuations.

According to the data, FPIs invested Rs8,129 crore in this month (till February 6). Himanshu Srivastava, principal manager- research at Morningstar Investment Research India, said the recent buying reflects improving risk appetite and renewed confidence in India’s growth outlook.

“The sentiment was supported by easing global uncertainties, stability in domestic interest rate expectations, and optimism around India-US trade and policy developments,” he added.

The turnaround contrasts sharply with January’s outflows, when FPIs exited Indian markets amid a global risk-off environment and elevated US bond yields.