FPI Inflows Surge to 17 Month High at ₹22,615 Crore In Feb 2026

Foreign Portfolio Investors (FPIs) pumped ₹22,615 crore into Indian equities in February 2026 which is marking the highest monthly inflow in 17 months. The surge comes after three consecutive months of heavy selling and reflects renewed foreign confidence driven by the interim India-US trade deal, improved corporate earnings, and corrected market valuations. The inflow signals a potential shift in sentiment after a turbulent start to 2025 for foreign investments.

FPI Inflow February 2026: ₹22,615 Crore Boost

The latest data shows that FPI inflow February 2026 stood at ₹22,615 crore the strongest monthly inflow since September 2024.

This follows significant outflows,

• January 2026: ₹35,962 crore withdrawn
• December 2025: ₹22,611 crore withdrawn
• November 2025: ₹3,765 crore withdrawn

Overall, FPIs had pulled out ₹1.66 trillion (USD 18.9 billion) in 2025 before February’s rebound.

India-US Trade Deal and Earnings Drive FPI Buying

• A key trigger behind the FPI inflow February 2026 was the interim India-US trade agreement, which reduced tariff uncertainty and strengthened investor sentiment.
• Strong Q3FY26 corporate earnings growth of 14.7% further boosted confidence.
• Market valuations had corrected from earlier peaks, making Indian equities relatively attractive.
• Analysts highlighted that improved trade visibility and stable macro fundamentals supported renewed foreign participation.

Sectoral Trends: Financials Lead, IT Faces Outflows

The February FPI inflow showed clear sectoral patterns,

• Strong buying in financial services
• Increased exposure to capital goods
• Continued selling in IT sector (₹10,956 crore outflow)
• Concerns around AI-driven disruption and global tech uncertainties contributed to IT outflows.

The shift suggests FPIs are rotating portfolios toward domestic growth-linked sectors.

Rupee Stability and FY27 Growth Outlook

Rupee stability below ₹91 per dollar has provided comfort to foreign investors regarding currency risk.

Looking ahead,

• Q4 earnings performance will be crucial
• FY27 earnings growth of 15% remains a key expectation
• GDP growth prospects appear steady

While FPIs may adopt a cautious approach toward emerging markets, India’s improving macro indicators support medium-term optimism.

Global Factors: Middle East Tensions and Oil Prices

• The ongoing Middle East conflict has created volatility in global markets.
• Crude oil prices and currency fluctuations remain key monitorable factors.
• Any sharp rise in oil prices could affect inflation and fiscal balance, influencing future FPI flows.
• Despite these risks, the February 2026 inflow indicates resilience in India’s equity markets.

Brief Background: FPI Trends in 2025-26

Foreign Portfolio Investors play a critical role in India’s capital markets, influencing liquidity and valuations.

After heavy selling in late 2025 and early 2026 due to,

• Currency volatility
• US tariff concerns
• Elevated valuations

February’s ₹22,615 crore inflow marks a significant turnaround.

Question

Q. FPIs invested how much in Indian equities in February 2026?

A) ₹19,675 crore
B) ₹22,615 crore
C) ₹35,962 crore
D) ₹57,724 crore