Foreign institutional investors (FIIs) have once again returned to the Indian stock market as buyers in the month of February. Till now he has purchased shares worth about Rs 16,912 crore. Market experts believe that the better third quarter (Q3) results of companies have increased the confidence of foreign investors, due to which this trend has been seen.
The situation was opposite in January. That month, foreign investors had sold about Rs 35,962 crore. The net withdrawal from the beginning of the year till now was around Rs 19,050 crore. In such a situation, purchases in February are being considered a positive sign for the market.
Clear change visible in the data
Dr. V.K., Chief Investment Strategist of Geojit Investments. According to Vijayakumar, there is a clear change in FPI inflow in February. Out of 16 trading sessions till February 20, foreign investors were buyers on 9 days.
According to data from National Securities Depository Limited (NSDL), till February 20, more than Rs 14,177 crore was invested through the exchange. Apart from this, investment of Rs 2,733 crore was made in the primary market, taking the total investment to about Rs 16,911 crore.
Different attitudes in sectors
However, the trend was not the same in all sectors. Due to anthropic shock in the IT sector, foreign investors made huge sales. At the same time, good buying was seen in the financial services and capital goods sectors. It is clear that investors are betting on selected sectors.
What will be the trend going forward?
Experts believe that improvement in corporate earnings can further support foreign investment. There has been a growth of 14.7% in the income of companies in Q3FY26. According to initial estimates, a growth of about 15% is possible in FY27 also. However, the overall trend so far in 2025 has been volatile. This year, foreign investors have withdrawn more than Rs 1.66 lakh crore from the Indian market. In such a situation, the purchases in February are being seen as a possible trend reversal, but only the data of the coming months will confirm this.