Foreign investors back in Indian stocks after months of outflows
Foreign investors just brought ₹33,487 crore back into Indian stocks in the first half of February—after several months of net outflows.
Sectors like capital goods, financial services, and oil & gas got the biggest boost, signaling renewed confidence in India's market.
IT sector woes
This sudden inflow is thanks to positive vibes from the US-India trade deal, a steady Union Budget, and strong company earnings.
But not everyone's celebrating: the IT sector saw a big ₹10,000 crore outflow as worries about AI-driven automation spooked investors.
Nifty IT is down nearly 15% year-to-date, while the benchmark Nifty has moved only modestly — about a 2.6% decline year-to-date (2026), per the provided reports.
What's driving the foreign inflows?
Investors are chasing sectors that lagged before but now look promising as India's economy grows.
Meanwhile, tech stocks are under pressure because people worry AI could shake up software jobs.
So far, foreign inflows have been sizable—about ₹33,487 crore in the first half of February—suggesting global money is watching India closely.