FPIs make comeback on backdrop of India-US interim trade deal:Foreign investors invest over ₹8,000 crore in Indian stock markets in Feb 1st week

In the first week of February, Foreign Portfolio Investors (FPI) became net buyers in the Indian stock market. They invested more than ₹8,100 crore in one week. This buying came due to the India-US trade deal, which brought positive sentiment to the market. FPIs were continuously selling for the past three months, but now the trend has changed. FPIs have purchased equities worth ₹8,129 crore so far in February According to NSDL data, FPIs invested ₹8,129 crore in Indian equity in the first 6 days of February. This figure is up to February 6. Before this, FPIs withdrew ₹35,962 crore in January. They sold shares worth ₹22,611 crore in December and ₹3,765 crore in November. In 2025, FPIs withdrew net ₹1.71 lakh crore, which was the worst period in a long time. US Trade Deal changed the atmosphere The trade deal breakthrough between India and US has reduced global uncertainty. The US has talked about reducing tariffs on Indian goods, which has improved risk appetite in the market. The rupee has also improved, which had earlier reached a record low of 90.30, but is now stabilizing. Experts say this deal will help reduce global trade tension. What experts are saying? Himanshu Srivastava of Morningstar Investment Research India said, “Recent buying shows improvement in risk appetite and renewed hope in India’s growth outlook. Sentiment has strengthened due to reduced global uncertainty, stability in domestic interest rates and India-US trade developments.” Angel One’s Waqar Javed Khan explained, “Breakthrough in India-US trade talks reduced geopolitical uncertainty and brought market rally. US yields stabilizing and fiscal stimulus in FY26 budget also helped.” VK Vijayakumar of Geojit Investments said, “Sentiment also improved due to rupee appreciation. Rupee could go below 90 by end of March 2026, which may bring more FPI inflows, but will depend on global trade and AI developments.” Reasons for selling in previous months In recent months, FPIs sold due to rupee volatility, global trade tensions, US tariff concerns and high valuations. In January, outflows increased due to global environment and high US bond yields. Experts believe that if corporate earnings remain strong and global trade tensions stay under control, more inflows could come.