FPIs turn net buyers after 3 months, invest ₹8,100cr
What's the story
After three months of heavy selling, the foreign portfolio investors (FPIs) have turned net buyers in the first week of February. They pumped over ₹8,100 crore into Indian equities during this period. The investment was largely driven by an improving risk sentiment as well as optimism over a trade deal with the US.
Market reversal
FPIs withdrew ₹35,962cr in January alone
The recent inflow marks a major reversal from the trend of heavy withdrawals seen in previous months. In January alone, FPIs withdrew ₹35,962 crore from Indian equities. This was preceded by withdrawals of ₹22,611 crore in December and ₹3,765 crore in November. Overall, 2025 saw FPIs withdraw a net ₹1.66 lakh crore from Indian equities due to volatile currency movements and global trade tensions among other factors.
Expert opinions
Improved risk appetite and renewed confidence in India's growth outlook
Himanshu Srivastava from Morningstar Investment Research India attributed the recent investment surge to an improved risk appetite and renewed confidence in India's growth outlook. He said, "The sentiment was supported by easing global uncertainties, stability in domestic interest rate expectations, and optimism around India-US trade and policy developments." This positive sentiment sharply contrasts the January's outflows when FPIs exited Indian markets amid a global risk-off environment and high US bond yields.
Market boosters
Breakthrough in India-US trade talks
Vaqarjaved Khan from Angel One said the breakthrough in India-US trade talks helped lower geopolitical uncertainty and fuel a market rally. He also credited the stabilizing US yields and supportive measures announced in the Union Budget for FY26, including fiscal stimulus and sector-specific incentives. VK Vijayakumar of Geojit Investments emphasized the rupee's appreciation as a key factor in improving sentiment.