Key Highlights
- The rebound was driven by positive developments including the interim India‑US trade deal, a correction in domestic market valuations, and robust third-quarter corporate earnings.
- These factors helped reverse the trend of recent outflows and attracted fresh foreign investment.
- Data from depositories shows FPIs had pulled out Rs 35,962 crore in January, Rs 22,611 crore in December, and Rs 3,765 crore in November 2025.
- Despite February’s inflow, foreign investors have recorded a net withdrawal of Rs 1.66 trillion (approximately $18.9 billion) from Indian equities in 2025, marking one of the toughest periods for FPIs in recent years.
- Earlier outflows were influenced by volatile currency movements, global trade tensions, concerns over potential US tariffs, and elevated equity valuations.
