Indian equities got a shot in the arm as FPIs reversed course in February, channeling ₹22,615 crore into the market—their biggest monthly buy in 17 months. This came after three months of net selling, signaling a sharp pivot.
Boosters for this comeback? An interim trade deal with the US, softening domestic valuations, and stellar Q3 earnings from corporates. These elements quelled doubts and spurred fresh buying.
Contrast this with recent history: FPIs yanked out ₹35,962 crore in January alone, following ₹22,611 crore in December and ₹3,765 crore in November. The year’s total outflow hit ₹1.66 lakh crore ($18.9 billion), blamed on volatile forex, global trade woes, tariff threats from America, and rich valuations.
February’s haul is the heftiest since September’s ₹57,724 crore. Preemptive reports from brokerages foresaw this, attributing it to easing currency pressures and affirming India’s solid long-haul story.
Amid FPI jitters, DIIs emerged as heroes, preserving market poise. Today, DII stakes surpass FPIs, forming a protective shield against swings.
Domestic savings’ equity tilt persists strongly. Projections indicate rising market share from household investments over the next ten years, with gold’s slight gain posing no major threat.
This inflow renaissance hints at broader confidence returning, likely fueling index gains and attracting more global capital to India’s vibrant markets.