After three consecutive months of heavy promoting, overseas portfolio traders (FPIs) turned net buyers in the primary week of February, infusing greater than ₹8,100 crore in Indian equities, aided by enhancing danger sentiment, together with a trade deal with the US.
The inflows comply with sustained withdrawals in latest months, with FPIs pulling out ₹35,962 crore in January, ₹22,611 crore in December and ₹3,765 crore in November, information with the depositories confirmed.
General, in 2025, FPIs pulled out a net ₹1.66 lakh crore ($18.9 billion) from Indian equities, marking one of many worst durations for overseas flows. The promoting was pushed by unstable forex actions, international trade tensions, issues over potential US tariffs and stretched fairness valuations.
In line with the info, FPIs invested ₹8,129 crore in this month (until February 6).
Himanshu Srivastava, principal manager- analysis at Morningstar Funding Analysis India, stated the latest shopping for displays enhancing danger urge for food and renewed confidence in India’s development outlook.
“The sentiment was supported by easing international uncertainties, stability in home rate of interest expectations and optimism round India-US trade and coverage developments,” he added.
The turnaround contrasts sharply with January’s outflows, when FPIs exited Indian markets amid a international risk-off atmosphere and elevated US bond yields.
Echoing comparable views, Vaqarjaved Khan, senior elementary analyst at Angel One, stated the breakthrough in India-US trade talks helped cut back geopolitical uncertainty and gas a market rally, alongside stabilising US yields and supportive measures introduced in the Union Finances for FY26, together with fiscal stimulus and sector-specific incentives.
VK Vijayakumar, chief funding strategist at Geojit Investments, stated the appreciation of the rupee additionally performed a key function in enhancing sentiment. The rupee strengthened from a file low of 90.30 in opposition to the greenback, though it later weakened to round 90.70 by the shut of February 6.
He stated the rupee is predicted to stabilise and steadily respect to beneath 90 per greenback by the top of March 2026, which may set off further FPI inflows, though outcomes will rely on how international trade and synthetic intelligence-related developments unfold.
Market members stay cautiously optimistic. Additional inflows may materialise if company earnings momentum continues and international trade tensions stay contained, though lingering rupee weak spot, elevated valuations and potential shifts in US coverage may restrict upside, Khan stated.
Printed on February 8, 2026
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