After consecutive months of massive withdrawals—₹35,962 crore in January, ₹22,611 crore in December, and ₹3,765 crore in November— the tide appears to be turning. Cumulative outflows for 2025 so far total ₹1.66 lakh crore ($18.9 billion), underscoring one of the most challenging phases for foreign capital in India.

Blame for the exodus rested on a cocktail of risks: rupee fluctuations, escalating global trade frictions, anticipated US tariffs, and pricey domestic valuations. Now, optimism around a potential US-India trade agreement and softening worldwide economic strains is drawing money back in.

Trading patterns in February reflect this shift. Through 13 sessions, FPIs net bought on seven days versus selling on four. Yet, overall monthly data indicates a net sale of ₹1,374 crore, tempering the excitement slightly.

Experts caution that while these inflows bolster sentiment, longevity hinges on steady global conditions and policy clarity on trade and interest rates. The broader market context adds nuance: despite the FPI rebound, Friday’s session was brutal.

BSE Sensex cratered 1,048 points (1.25%) to 82,626.76, while NSE Nifty dropped 336.10 points (1.30%) to 25,471.10. Triggers included feeble international signals and apprehensions about AI’s disruptive economic footprint.

This interplay of foreign flows and domestic volatility highlights the delicate balance Indian markets must strike. For now, the ₹19,675 crore injection offers hope for stabilization and growth in the weeks ahead.