“FPIs Invest ₹19,675 Crore in Indian Equities Amid Easing Global Concerns and US-India Trade Deal”

In a significant shift, Foreign Portfolio Investors (FPIs) made a robust return to Indian equities in early February, infusing a notable Rs 19,675 crore during the first fortnight. This resurgence can be attributed to the positive sentiment surrounding the US-India trade deal and a relief from prevailing global macroeconomic uncertainties. This influx of capital comes on the heels of a challenging three-month period marked by substantial withdrawals, with FPIs divesting a staggering Rs 35,962 crore in January, Rs 22,611 crore in December, and Rs 3,765 crore in November, as per data from depositories. The year 2025 has proven particularly tumultuous for FPIs, with net outflows reaching Rs 1.66 lakh crore (approximately USD 18.9 billion) from Indian equities, highlighting one of the most challenging phases for foreign investment flows. The earlier sell-off was primarily influenced by volatile currency fluctuations, escalating global trade tensions, apprehensions regarding potential US tariffs, and elevated equity valuations. However, the recent data indicating an investment of Rs 19,675 crore by FPIs until February 13 suggests a rebound in investor confidence. Himanshu Srivastava, Principal Manager – Research at Morningstar Investment Research India, noted that this renewed interest is largely driven by easing macroeconomic concerns globally. As FPIs navigate the complexities of foreign investment in India, the latest trends signal potential stabilization in the Indian equity market, offering opportunities for investors looking to capitalize on emerging market dynamics.