A strong return of foreign portfolio investors has lit a fire under Indian stocks. In February’s first 15 days, FPIs committed ₹19,675 crore, a welcome relief following an agonizing stretch of net selling that battered benchmarks.
The backdrop was grim: three months of heavy outflows totaling over ₹62,000 crore from November to January. Year-to-date 2025 figures reveal ₹1.66 lakh crore ($18.9 billion) pulled out, driven by currency swings, trade wars, US policy uncertainties, and rich equity pricing.
February’s data hints at healing. In 11 trading days to February 13, buying dominated with seven positive sessions against four outflows. Net for the month, however, FPIs offloaded ₹1,374 crore—a minor blemish on the broader uptick.
Catalysts for this change include progress on US-India trade talks and receding global economic jitters. Analysts stress that maintaining this momentum requires consistent international stability and transparent fiscal-monetary frameworks.
Market watchers are heartened but realistic. The recent capital infusion signals rebuilding trust, yet vulnerabilities persist. Case in point: markets tanked sharply on February 13 amid downbeat global trends and AI-related economic worries.
BSE’s flagship index plunged 1,048 points or 1.25% to settle at 82,626.76. NSE Nifty mirrored the slide, falling 336.10 points or 1.30% to 25,471.10.
Looking forward, this FPI resurgence could pave the way for a robust recovery phase, but investors must navigate ongoing geopolitical and technological risks with vigilance.