Mumbai, India — February 15, 2026
Foreign portfolio investors (FPIs) have made a notable comeback to India’s equity markets, investing ₹19,675 crore in the first two weeks of February, signaling renewed global confidence after three straight months of heavy outflows.
The turnaround follows optimism surrounding a potential U.S.–India trade agreement and improving global economic conditions, which analysts say have encouraged overseas investors to re-enter emerging markets, including India.
Strong Inflows After Months of Selling
According to depository data, foreign investors had previously withdrawn substantial funds from Indian equities:
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January: ₹35,962 crore outflow
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December: ₹22,611 crore outflow
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November: ₹3,765 crore outflow
Cumulatively, FPIs have pulled out roughly ₹1.66 lakh crore (about $18.9 billion) from Indian markets so far in 2025, making this one of the weakest phases for foreign investment in recent years.
Market observers attribute the earlier withdrawals to currency volatility, global trade tensions, concerns over potential U.S. tariff policies, and relatively high valuations in Indian equities.
February Signals Shift in Sentiment
The trend has begun to stabilize this month. By February 13, FPIs were net buyers on 7 of the first 11 trading sessions, while selling on 4 days. Despite frequent buying sessions, the month still shows a net equity outflow of ₹1,374 crore so far, indicating that investor sentiment is improving but remains cautious.
Experts note that sustaining this momentum will depend on global market stability and clearer signals on trade and monetary policy.
Markets Still Volatile
Despite the renewed inflows, Indian benchmark indices closed sharply lower on Friday amid weak global cues and rising concerns about the potential economic impact of artificial intelligence developments.
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The BSE benchmark Sensex dropped 1,048 points (1.25%) to close at 82,626.76.
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The Nifty 50 fell 336.10 points (1.30%) to settle at 25,471.10.
Analysts say such volatility reflects lingering uncertainty in global markets rather than domestic weakness.
Market Outlook
Financial strategists suggest that while February’s investment inflows indicate improving sentiment, sustained foreign participation will depend on:
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Stability in global interest rates
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Clarity on trade policies
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Currency stability
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Reasonable equity valuations
If these factors align, India could see stronger foreign capital flows in the coming quarters.
