FPIs inflow hit 17-month high in February

Foreign portfolio investors (FPIs) made a powerful comeback to Indian equities in February, bringing in ₹22,615 crore. This marks the highest monthly inflow in 17 months and signals renewed confidence in India’s growth story. The surge comes after three consecutive months of heavy selling, which had raised concerns about foreign sentiment.

Several factors contributed to this turnaround. Strong corporate earnings across sectors reassured investors about India’s economic resilience. Attractive valuations compared to global peers made Indian stocks appealing, while easing global trade tensions and steady domestic fundamentals added to the positive mood. Analysts believe that India’s long-term growth prospects, supported by government reforms and rising consumption, continue to attract foreign capital despite short-term volatility.

The inflows were spread across multiple sectors, with financials, IT, and manufacturing seeing notable interest. Experts suggest that FPIs are likely to remain active in the coming months, especially if global interest rates stabilize and inflationary pressures ease.

This renewed foreign participation is expected to strengthen market liquidity, support broader investor confidence, and potentially drive indices higher. For India, the February rebound highlights its position as a preferred investment destination in emerging markets, reinforcing optimism about sustained growth and stability in the year ahead.