India’s stock market is witnessing a seismic shift as FPIs stage a robust comeback, channeling ₹19,675 crore into equities in early February. This injection follows a brutal three-month purge that saw massive exits weighing on sentiment.
Depository records detail the damage: ₹3,765 crore out in November, ₹22,611 crore in December, and a peak ₹35,962 crore in January. The 2025 year-to-date drain hits ₹1.66 lakh crore ($18.9 billion), fueled by rupee woes, global trade strife, tariff fears, and lofty share prices.
Turning the corner, FPIs bought net on seven of 11 sessions through February 13, selling on four. Monthly net remains a sale of ₹1,374 crore, but the trajectory points upward, buoyed by US-India trade prospects and milder global conditions.
Veteran observers note improving investor faith, but warn of fragility. Sustained flows demand steady global markets, definitive trade stances, and monetary predictability.
Friday’s bloodbath underscores the challenges. Weak overseas cues and AI’s looming economic shadows triggered steep declines: BSE Sensex lost 1,048 points (1.25%) to 82,626.76; NSE Nifty gave up 336.10 points (1.30%) to 25,471.10.
This FPI pivot amid volatility offers a glimpse of potential revival. Strategic positioning will be key as markets balance foreign enthusiasm with domestic and international pressures.