FPIs turn net buyers in Feb; invest Rs 8,100 cr in a week on US trade deal

After three consecutive months of heavy promoting, overseas portfolio traders (FPIs) turned net buyers in the primary week of February, infusing greater than Rs 8,100 crore in Indian equities, aided by enhancing threat sentiment, together with a trade deal with the US.

The inflows comply with sustained withdrawals in latest months, with FPIs pulling out Rs 35,962 crore in January, Rs 22,611 crore in December, and Rs 3,765 crore in November, knowledge with the depositories confirmed.

Total, in 2025, FPIs pulled out a net Rs 1.66 lakh crore (USD 18.9 billion) from Indian equities, marking one of many worst intervals for overseas flows. The promoting was pushed by risky forex actions, international trade tensions, issues over potential US tariffs and stretched fairness valuations.

In response to the information, FPIs invested Rs 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 threat urge for food and renewed confidence in India’s progress 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 related views, Vaqarjaved Khan, senior basic analyst at Angel One, stated the breakthrough in India-US trade talks helped scale back geopolitical uncertainty and gasoline a market rally, alongside stabilising US yields and supportive measures introduced in the Union Price range 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 document low of 90.30 towards 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 tip of March 2026, which might set off extra FPI inflows, though outcomes will rely on how international trade and synthetic intelligence-related developments unfold.

Market individuals stay cautiously optimistic. Additional inflows might 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 might restrict upside, Khan stated.