Home / Business and Economy / FPIs Reverse Course: India Equities See February Inflows
FPIs Reverse Course: India Equities See February Inflows
15 Feb
Summary
- FPIs injected Rs 19,675 crore into Indian equities in early February.
- This inflow followed three consecutive months of heavy FPI selling.
- Easing global macro concerns and a US-India trade deal boosted sentiment.
Foreign Portfolio Investors (FPIs) have demonstrated a notable shift in sentiment, injecting Rs 19,675 crore into Indian equities during the first fortnight of February 2026. This substantial inflow follows a period of significant selling pressure, with FPIs having withdrawn a net Rs 1.66 lakh crore from Indian equities throughout 2025. The recent buying activity is supported by positive developments such as the US-India trade deal and a perceived easing of global macroeconomic concerns.
Factors contributing to this improved risk appetite include softer US inflation data, which has stabilized bond yields and the US dollar, making emerging markets like India more attractive. Domestically, steady macroeconomic indicators, controlled inflation, and stable corporate earnings have bolstered confidence in India's economic outlook. These inflows represent a welcome change after substantial outflows in January (Rs 35,962 crore), December (Rs 22,611 crore), and November (Rs 3,765 crore) of the previous year.
Despite the overall positive trend in early February, some volatility was observed. FPIs turned net sellers on four trading sessions up to February 13, 2026, including a sharp sell-off of Rs 7,395 crore on February 13. This specific day saw a significant decline in the Nifty index and heavy selling in IT stocks, possibly linked to the 'Anthropic shock', which caused the IT index to plunge 8.2% in the week ending February 13, 2026.
