What is the news?
Foreign portfolio investors (FPIs) have made a strong comeback in the Indian stock market and became net buyers in February after 3 consecutive months of withdrawal. This month’s investment stood at Rs 22,615 crore, the highest ever monthly investment by FPIs in the last 16 months. The last time foreign investors made this much investment was in September 2024, when they invested Rs 57,724 crore in Indian stocks.
Continuous withdrawal in last 3 months
This increase in foreign investment in February comes after recent huge withdrawals by foreign investors. In January, foreign investors had withdrawn Rs 35,962 crore. Earlier, there was a withdrawal of Rs 22,611 crore in December last year and Rs 3,765 crore in November. Despite the increase in foreign investment, the performance of the stock market remained sluggish with Sensex falling by more than 1 per cent and Nifty falling by 0.5 per cent.
What do analysts expect?
Market experts believe that the reason for the increasing interest of FPIs is the improvement in the profits of companies. Dr. V.K., Chief Investment Strategist, Geojit Investments. Vijayakumar said that the results of the third quarter of FY 2026 show a clear increase of 14.7 percent in the profits of companies. They believe this trend will continue for the rest of FY2026 and estimate growth of around 15 per cent for FY2027.

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