- By Aditya Pratap Singh
- Sun, 08 Feb 2026 04:48 PM (IST)
- Source:JND
Stock Market News: After three consecutive months of heavy selling, foreign portfolio investors (FPIs) turned net buyers in the first week of February, pouring over Rs 8,100 crore into Indian equities, helped by improving risk sentiment and trade deals with the US.
The inflows followed a series of withdrawals over the past few months, resulting in FPI withdrawals of Rs 35,962 crore in January, Rs 22,611 crore in December and Rs 3,765 crore in November, according to data from depositors.
Overall, in 2025, FPIs pulled out a net Rs 1.66 lakh crore (US$18.9 billion) from Indian equities, making it one of the worst periods for foreign inflows. The selling was driven by volatile currency movements, global trade tensions, potential US tariffs and stretched equity valuations.
FPIs have invested Rs 8,129 crore this month (as of February 6).
Himanshu Srivastava, principal manager, Morningstar Investment Research India, said the recent buying reflects rising risk appetite and renewed confidence in India's growth outlook.
"The sentiment was supported by easing global uncertainties, stability in domestic interest rate expectations, and optimism around India-US trade and policy developments," he added.
The turnaround was in stark contrast to the January outflows of FPIs from the Indian market amid a global risk-off environment and rising US bond yields.
Echoing similar views, Bagharzaved Khan, senior fundamental analyst at Angel One, said progress in India-US trade talks helped reduce geopolitical uncertainty and spur market recovery, as did the US manufacturing and Union Budget announcements, including fiscal stimulus and sector-specific incentives.
V.K. Vijayakumar, chief investment strategist at Geokit Investments, said the rupee had played a key role in improving sentiment. The dollar strengthened from a low of 90.30 but later weakened to around 90.70 in the late hours of February 6.
The rupee is expected to stabilize and gradually rise below 90 per dollar by the end of March 2026, which could trigger additional FPI inflows, although the outcome depends on how global trade and developments related to artificial intelligence play out.
(With Inputs From PTI)