Foreign portfolio investors (FPIs) have returned to the Indian stock market as net buyers, pumping over ₹8,100 crore into equities in early February. This marks the first major inflow after three consecutive months of heavy selling, reflecting renewed optimism following a landmark India‑US trade deal and improving global risk sentiment.
Data from depositories shows FPIs invested around ₹8,129 crore up to 6 February. This is a sharp turnaround from the outflows seen over the past months, where investors withdrew ₹35,962 crore in January, ₹22,611 crore in December, and ₹3,765 crore in November. The selling spree had been driven by global uncertainties, currency volatility, and fears of trade restrictions, which dampened foreign investor confidence.
Analysts say the recent inflows are largely motivated by the interim India‑US trade agreement, which eased geopolitical concerns and boosted expectations for stronger export growth and corporate earnings. “The trade deal has removed some of the uncertainty around bilateral trade, encouraging FPIs to return to Indian equities,” noted a market strategist.
Apart from the trade deal, stabilising domestic and global conditions, a stronger rupee, and lower market volatility have contributed to improved investor sentiment. Positive policy measures and clearer regulatory frameworks have further reassured foreign investors about India’s growth trajectory.
Despite the encouraging inflows, experts caution that this may not signal a long-term reversal yet. “While early February’s data is positive, sustained foreign investment will depend on macroeconomic stability, corporate performance, and the broader global trade environment,” said an economist.
The return of FPIs is seen as a welcome support for the Indian stock market, which had been under pressure from prolonged foreign selling.
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