FPI flows reverse, Rs 11,600 crore equity inflows in February: Will the trend sustain?
Data showed that FPIs were net sellers of domestic equities worth Rs 1,66,286 crore in 2025, after being net buyers to the tune of Rs 1,10,813 crore in 2024.
- Feb 10, 2026,
- Updated Feb 10, 2026 11:56 AM IST
After pulling out Rs 22,611 crore from domestic equities in December 2025 and Rs 35,962 crore in January, foreign portfolio investors (FPIs) have returned to the Street, buying domestic stocks worth Rs 11,641 crore in February so far. The inflows were aided by recent twin trade deals, a recovery in the rupee and hopes of a global rotation away from technology stocks.
Provisional data showed that FPIs bought shares worth Rs 2,254.64 crore on Monday, in addition to purchases of Rs 1,950.77 crore on Friday. They have been net buyers in four of the seven trading sessions so far this month.
EPFR fund flow data suggested that after six weeks of sustained redemptions, India-focused funds showed early signs of stabilisation, with a marginal inflow of $67 million last week, Elara Securities said.
“The conclusion of the India-US trade deal, correction in India’s relative premium to MSCI EM, now at 1.6 times, and recovery in nominal GSP growth should give further fillip to India FPI flows,” it said, adding that a rotation from US technology dominance to non-technology areas is actively playing out so far in 2026.
Data showed that FPIs were net sellers of domestic equities worth Rs 1,66,286 crore in 2025, after being net buyers to the tune of Rs 1,10,813 crore in 2024.
“FII participation has turned meaningfully supportive this month, providing a clear sentiment tailwind, while domestic institutional investors remain steady, offering underlying stability despite neutral activity in the previous session,” said Ponmudi R, CEO of Enrich Money.
Ponmudi added that a relatively stable rupee further adds to macro comfort. Overall, the near-term backdrop remains cautiously optimistic, supported by trade-deal optimism, improving foreign flows and steady domestic participation, he said.
SBI Mutual Fund said in a note that the India-US resolution may help ease external account pressures by reviving FII inflows and reducing depreciation pressures on the rupee, which has sharply underperformed other emerging-market currencies.
It noted that the India-US trade deal follows the India-EU trade agreement, adding that emerging markets have performed well over the past eighteen months and investor interest in the asset class has re-emerged strongly, notwithstanding near-term jitters triggered by a recent uptick in the dollar.
“In this eighteen-month period, however, India has been a stark underperformer and FPI flows have stayed negative. The underperformance is now at record levels versus history. Through this phase, the excessive premium at which India traded versus emerging markets has moderated back to historical averages, making for better entry points. In this context, continued interest towards emerging markets and improved sentiment towards India is likely to see a fair share move towards India as well,” it said.
After pulling out Rs 22,611 crore from domestic equities in December 2025 and Rs 35,962 crore in January, foreign portfolio investors (FPIs) have returned to the Street, buying domestic stocks worth Rs 11,641 crore in February so far. The inflows were aided by recent twin trade deals, a recovery in the rupee and hopes of a global rotation away from technology stocks.
Provisional data showed that FPIs bought shares worth Rs 2,254.64 crore on Monday, in addition to purchases of Rs 1,950.77 crore on Friday. They have been net buyers in four of the seven trading sessions so far this month.
EPFR fund flow data suggested that after six weeks of sustained redemptions, India-focused funds showed early signs of stabilisation, with a marginal inflow of $67 million last week, Elara Securities said.
“The conclusion of the India-US trade deal, correction in India’s relative premium to MSCI EM, now at 1.6 times, and recovery in nominal GSP growth should give further fillip to India FPI flows,” it said, adding that a rotation from US technology dominance to non-technology areas is actively playing out so far in 2026.
Data showed that FPIs were net sellers of domestic equities worth Rs 1,66,286 crore in 2025, after being net buyers to the tune of Rs 1,10,813 crore in 2024.
“FII participation has turned meaningfully supportive this month, providing a clear sentiment tailwind, while domestic institutional investors remain steady, offering underlying stability despite neutral activity in the previous session,” said Ponmudi R, CEO of Enrich Money.
Ponmudi added that a relatively stable rupee further adds to macro comfort. Overall, the near-term backdrop remains cautiously optimistic, supported by trade-deal optimism, improving foreign flows and steady domestic participation, he said.
SBI Mutual Fund said in a note that the India-US resolution may help ease external account pressures by reviving FII inflows and reducing depreciation pressures on the rupee, which has sharply underperformed other emerging-market currencies.
It noted that the India-US trade deal follows the India-EU trade agreement, adding that emerging markets have performed well over the past eighteen months and investor interest in the asset class has re-emerged strongly, notwithstanding near-term jitters triggered by a recent uptick in the dollar.
“In this eighteen-month period, however, India has been a stark underperformer and FPI flows have stayed negative. The underperformance is now at record levels versus history. Through this phase, the excessive premium at which India traded versus emerging markets has moderated back to historical averages, making for better entry points. In this context, continued interest towards emerging markets and improved sentiment towards India is likely to see a fair share move towards India as well,” it said.