What is the news?
After 3 months of heavy selling in the Indian stock market, foreign portfolio investors (FPIs) have started net buying in the first week of February. During this period he invested more than Rs 8,129 crore in Indian shares. This investment is mainly due to the India-US trade agreement which has created a positive risk appetite. Due to this, there has been a change in the selling thinking among investors from the last 3 months.
Sales figures have been like this
According to depository data, foreign investors had withdrawn Rs 35,962 crore in January, Rs 22,611 crore in December and Rs 3,765 crore in November. FPIs made a total net withdrawal of Rs 1,660 billion from Indian equities in 2025, which is one of the worst periods for foreign investment. The reasons behind this were currency instability, global trade tensions, concerns about possible tariffs by the US and excessive valuation of shares.
Due to this increase in investment
Himanshu Srivastava, principal manager-research, Morningstar Investment Research India, said the recent purchases reflect growing risk appetite and renewed confidence in India’s growth outlook. He further said, “Reduction in global uncertainties, stability in domestic interest rate expectations, optimism over India-US trade and policy developments underpinned the sentiment.” In January, FPIs had withdrawn money due to global risk-free environment and rise in US bond yields.

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