FPI inflows rebound to Rs 19,675 cr in early Feb on US-India trade deal

New Delhi: Foreign Portfolio Investors (FPIs) staged a sharp turnaround in early February, pumping Rs 19,675 crore into Indian equities in the first fortnight, supported by the US-India trade deal and easing global macro concerns.

The inflows follow three consecutive months of heavy selling, with FPIs pulling out Rs 35,962 crore in January, Rs 22,611 crore in December, and Rs 3,765 crore in November, according to data from depositories.

Overall, in 2025, FPIs pulled out a net Rs 1.66 lakh crore ($18.9 billion) from Indian equities, marking one of the worst periods for foreign flows. The selling was driven by volatile currency movements, global trade tensions, concerns over potential US tariffs and stretched equity valuations.

According to the data, FPIs invested Rs 19,675 crore in this month (till February 13).

Himanshu Srivastava, principal manager - research, at Morningstar Investment Research India, said the recent buying was supported by easing global macro concerns, particularly softer US inflation data, leading to a positive sentiment towards the interest rate cycle, which helped stabilise bond yields and the US dollar.

Domestically, steady macro indicators, stable inflation, and broadly in-line corporate earnings reinforced confidence in India’s growth outlook, he added.

FPIs were net buyers on seven of the eleven trading sessions in February up to the 13th, turning sellers on only four occasions. Despite this, data shows that FPIs have net sold equities worth Rs 1,374 crore so far this month.

The overall figure was skewed by a sharp sell-off of Rs 7,395 crore on February 13, when the Nifty declined by 336 points. The week also saw heavy selling in IT stocks amid the so-called “Anthropic shock”.

It is likely that FPIs offloaded IT stocks aggressively in the cash market, as the IT index plunged 8.2 per cent during the week ended February 13, said VK Vijayakumar, Chief Investment Strategist at Geojit Investments.