FPIs inflow hit 17-month high at ₹22,615 crore in February
GS3Economy · S&T · Environment · Security· Capital markets & SEBI· Prelims·
Why in news
FPI inflows reached a 17-month high of ₹22,615 crore in February 2026, driven by the interim India-U.S. trade deal and robust corporate earnings.
Background
Foreign Portfolio Investors (FPIs) injected ₹22,615 crore into Indian equities in February 2026. This follows a net outflow of ₹1.66 lakh crore from Indian equities in 2025.
Facts for Prelims
- FactFPI inflow in February 2026 reached ₹22,615 crore, the highest since September 2024.
- FactIndia saw a net outflow of ₹1.66 lakh crore from equities in 2025.
- FactFPI interest was particularly noted in the financials and capital goods sectors.
For Mains
Q. Analyze the factors influencing the volatility of Foreign Portfolio Investment (FPI) flows in the Indian capital markets and their impact on macroeconomic stability.
Dimensions to cover in your answer
- External dependency: Vulnerability of domestic equity markets to global liquidity shifts and geopolitical trade deals
- Sectoral concentration: Impact of concentrated FPI interest in financials and capital goods on market volatility
Keywords: Capital Flows · Market Volatility · Foreign Portfolio Investment · Macroeconomic Stability · Trade Policy
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