Foreign investors return to Indian equity markets with Rs 8,129 crore in early February after 3-months of selling
Foreign investors returned to Indian stock markets with a bang in first week of February, investing over Rs 8,100 crore after three months of heavy selling. This turnaround comes after they pulled out nearly Rs 62,000 crore in the last three months. Better market sentiment and a new trade deal with the US helped bring them back.The change is significant because foreign investors had withdrawn a massive Rs 1.66 lakh crore ($18.9 billion) from Indian markets in 2025. This was one of the worst periods for foreign investment flows, triggered by currency issues, global trade problems, and high stock prices.Latest data shows foreign portfolio investors (FPIs) put in Rs 8,129 crore in just the first six days of February. This marks a complete shift from their behavior in January when they took out Rs 35,962 crore from the market.“The sentiment was supported by easing global uncertainties, stability in domestic interest rate expectations, and optimism around India-US trade and policy developments,” said Himanshu Srivastava from Morningstar Investment Research India, as quoted by PTI.Therupee’s performance also helped boost investor confidence. The currency recovered from its lowest point of 90.30 against the dollar, though it later settled around 90.70 on Friday. Experts think it might get stronger and go below 90 per dollar by March.Market experts remain hopeful but careful. Vaqarjaved Khan from Angel One points out that good company profits and calm global trade conditions could bring more foreign money. However, he warns that a weak rupee, high stock prices, and possible changes in US policies might limit these gains.The recent Union Budget for FY26 also played a role in attracting investors. It included financial support and special benefits for various sectors, making Indian markets more attractive to foreign investors.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
