Overall, FPIs extracted a net Rs 1.66 lakh crore (USD 18.9 billion) from Indian equities in 2025, marking one of the worst periods for foreign flows. The selling was driven by volatile currency movements, global trade tensions, concerns about possible US tariffs and high stock valuations.According to the data, FPIs invested Rs 19,675 crore this month (till February 13).
Himanshu Srivastava, principal manager – research at Morningstar Investment Research India, said the recent buying was supported by easing global macroeconomic concerns, especially softer US inflation data, leading to positive sentiment on the interest rate cycle, which helped stabilize bond yields and the US dollar.
This improved risk appetite towards emerging markets, including India.
Domestically, steady macro indicators, stable inflation and broadly in line corporate earnings boosted confidence in India’s growth prospects, he added. Echoing similar views, Vaqarjaved Khan, senior fundamental analyst at Angel One, said the inflows were driven by the US-India trade deal, supportive Union Budget 2026 with fiscal stimulus, easing global trade uncertainties, and stable domestic interest rates.
FPIs were net buyers during seven of the eleven trading sessions in February through the 13th, turning sellers only four times. Despite this, data shows that FPIs have sold net shares worth Rs 1,374 crore so far this month.
The overall figure was distorted by a sharp sell-off of Rs 7,395 crore on February 13, when the Nifty fell 336 points. The week also saw heavy selling in IT stocks amid the so-called “anthropic shock”. It is likely that FPIs aggressively offloaded IT stocks in the cash market as the IT index plunged 8.2 per cent in the week ended February 13, said VK Vijayakumar, Chief Investment Strategist at Geojit Investments.
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