February 2025 delivered a shock to the system for Indian investors: FIIs recorded their heftiest net inflow in 17 months at $2.44 billion, eclipsing September 2024. Secondary markets absorbed $2.14 billion, primaries $299 million, in a welcome counter to recent pain.
Primary investments stayed consistent from October 2023, but secondary saw $46 billion evaporate from January 2024 through December 2025. This month’s pivot followed early IT sector bloodletting of $1.21 billion, sparking a net buying spree.
Don’t pop the champagne yet, say pros. The sum lags behind historical sell-offs, potentially a mere pit stop in ongoing flux. IT drags could resume outflows, but fair valuations act as a safety net against steep declines.
Gains were broad: Sensex +1.08%, Nifty +2.05%, Midcap 100 +4.72%, Smallcap 250 +5.10% monthly. Projections glow brighter, with base Nifty target of 27,958 in a year, backed by policy sharpness, trade breakthroughs, and infra zeal.
Catalysts abound—the India-EU FTA could supercharge cycles ahead. Banking enjoys credit growth stabilizing at 13-14% with top-notch assets. Infra and defense surges lift capital goods and engineering stocks into the spotlight.
This FII resurgence underscores India’s magnetic pull. With risks balanced and opportunities stacking, February might just be the inflection point for equities’ next chapter.