February brought cheer to Dalal Street with FPIs delivering their most aggressive monthly inflow in 17 months: ₹22,615 crore. Ending a trio of net-selling months, this marks a pivotal sentiment shift.
Driving the change were the India-US trade interim accord, attractive re-rated domestic markets, and powerhouse Q3 profits. Such tailwinds dismantled outflow momentum, fostering bullish bets.
Prior damage was hefty—January’s ₹35,962 crore exit, December’s ₹22,611 crore, November’s ₹3,765 crore. Cumulatively last year, ₹1.66 lakh crore fled, spurred by rupee flux, trade skirmishes, US tariff specters, and lofty PE ratios.
Outpacing all but September 2024’s ₹57,724 crore, this surge aligned with analyst calls post-currency calm, emphasizing India’s robust equity fundamentals.
DIIs proved indispensable during FPI withdrawals, now boasting superior market heft and volatility-proofing the ecosystem.
Equity infusion from domestic savings endures as a cornerstone trend. Forecasts see it amplifying within total savings this decade, shrugging off gold’s marginal encroach.
With FPIs back in force, Indian markets eye prolonged uptrends, blending local vigor with international inflows for dynamic growth.