Due to the India-US trade deal, foreign investors have invested about Rs 20 thousand crores in the stock market in the month of February.Image Credit source: ChatGPT
The US-India trade deal has not only changed the face of global trade. On the other hand, an attempt has also been made to change the course of the Indian stock market. In the month of February, foreign investors once again gained confidence in the Indian stock market and invested a lot of money. So far in the month of February, foreign investors have invested about Rs 20 thousand crores. Whereas before this, foreign investors had withdrawn huge amount of money from the stock market for three consecutive months. However, if we talk about the current year, foreign investors have already withdrawn more than Rs 16 thousand crore from the stock market. Which was seen worth more than Rs 35 thousand crore in the month of January. Let us also tell you what kind of figures are being seen in NSDL.
FPI invested heavily in February
Following the US-India trade agreement, foreign portfolio investors (FPIs) have infused Rs 19,675 crore into the Indian stock market in the first two weeks of February. According to depository data, this inflow of FPI has happened after three consecutive months of heavy selling. FPI had withdrawn Rs 35,962 crore from the Indian stock market in January, Rs 22,611 crore in December and Rs 3,765 crore in November. Overall, in 2025, FPIs have pulled out a net Rs 1.66 lakh crore ($18.9 billion) from Indian equities. These have been the worst years in terms of FPI inflows. According to the data, FPIs have invested Rs 19,675 crore in shares this month (till February 13).
Why are FPIs being kind?
Himanshu Srivastava, Principal Manager – Research, Morningstar Investment Research India, said recent buying was supported by reduction in global macro concerns, especially soft US inflation data, which led to positive sentiment towards the interest rate cycle, which helped stabilize bond yields and the US dollar. This improved risk appetite in emerging markets including India. He further said that domestically, stable macro indicators, steady inflation and almost flat corporate income strengthened confidence in India’s growth scenario. Expressing similar views, Waqar Javed Khan, Senior Principal Analyst, Angel One, said that this investment inflow was driven by the US-India trade agreement, supportive Union Budget 2026 with fiscal stimulus, reduction in global trade uncertainties and stable domestic rates.
Purchased in 7 out of 13 sessions
In February, out of eleven trading sessions till 13th, FPIs were net buyers in seven and sold on only four occasions. Despite this, data shows that FPIs have sold shares worth Rs 1,374 crore so far this month. Due to 336 points fall in Nifty on February 13, there was huge selling of Rs 7,395 crore, which affected the overall figure. This week, heavy selling was also seen in IT stocks amid the so-called “man-made crisis”. VK Vijayakumar, chief investment strategist at Geojit Investments, said FPIs probably aggressively sold IT stocks in the cash market as the IT index declined 8.2 per cent during the week ended February 13.
