Mumbai’s stock market is buzzing with renewed optimism as foreign portfolio investors (FPIs) make a powerful comeback. In the first half of February, they injected a whopping ₹19,675 crore into Indian equities, signaling a shift after months of heavy outflows.
This resurgence comes after three straight months of relentless selling that drained billions from the market. Experts point to the budding US-India trade deal and easing global economic pressures as key drivers behind this renewed interest. The domestic benchmark indices have felt the strain of prior FPI exits, but fresh inflows suggest confidence is returning.
Depository data paints a stark picture of the recent past. In January, FPIs withdrew ₹35,962 crore, followed by ₹22,611 crore in December and ₹3,765 crore in November. Year-to-date in 2025, the total outflow stands at a staggering ₹1.66 lakh crore, or about $18.9 billion—the weakest period for foreign investment in recent years.
Factors like rupee volatility, global trade tensions, fears over US tariff policies, and elevated stock valuations fueled the sell-off. Yet, February tells a different story. Out of 11 trading sessions up to February 13, FPIs bought on seven days and sold on just four.
Despite mostly buying days, net figures show a modest ₹1,374 crore sell-off for the month so far. Market analysts remain cautiously optimistic, noting that sustained inflows will depend on global market stability, clearer trade policies, and monetary direction.
The week ended on a sour note, however. On Friday, February 13, Indian markets plunged amid weak global cues and growing concerns over artificial intelligence’s impact on the world economy. The BSE Sensex tumbled 1,048 points, or 1.25%, to close at 82,626.76. The NSE Nifty shed 336.10 points, or 1.30%, ending at 25,471.10.
As investors eye the road ahead, this FPI turnaround could be the spark needed to reignite bullish momentum, provided external headwinds don’t intensify.