FPIs Infuse Rs 8,100 Crore into Indian Equities

After three consecutive months of heavy selling, Foreign Portfolio Investors (FPIs) turned net buyers in Indian equities during the first week of February, infusing over Rs 8,100 crore. This turnaround follows significant withdrawals in previous months, totaling Rs 1.66 lakh crore in 2025, driven by volatile currency movements, global trade tensions, and concerns over US tariffs. The renewed confidence is attributed to improving risk sentiment, a trade deal between India and the United States, easing global uncertainties, stability in domestic interest rate expectations, and supportive measures in India's Union Budget for FY26. The appreciation of the India===Indian rupee against the United States dollar also played a crucial role in improving investor sentiment, with expectations for further stabilization and appreciation. Market participants remain cautiously optimistic, anticipating continued inflows if corporate earnings momentum persists and global trade tensions remain contained, though lingering India===Indian rupee weakness and elevated valuations could limit upside.