Foreign capital inflows return to Indian markets
Foreign portfolio investors returned to Indian markets with net inflows of ₹8,129 cr in early February 2026, following a trade deal with the U.S. that reduced tariffs significantly. This contrasts with ₹35,962 cr withdrawn in January, indicating a shift in investor sentiment amidst ongoing structural concerns.
pre-market1 source ↓written by the desknot a recommendation
- in the first
- ₹8,129 cr
- withdrawn in January
- ₹35,962 cr
- reduced tariffs
- 50% to 18%
The recent return of foreign portfolio investors (FPIs) to Indian equities marks a significant shift in sentiment, with a net inflow of ₹8,129 cr in the first week of February 2026, contrasting sharply with ₹35,962 cr withdrawn in January. This change is largely driven by a new trade agreement with the U.S. that reduced tariffs from 50% to 18%.
Despite this positive momentum, investors remain cautious due to ongoing structural concerns in the market. The Union Budget's commitment to growth further supports this renewed interest.
Not investment advice. For informational purposes only.