FPIs Inject Rs 8,100 Cr in Indian Equities Amid US Trade Deal Optimism

• Foreign Portfolio Investors (FPIs) turned net buyers in the first week of February, infusing over Rs 8,100 crore into Indian equities.
• This follows three consecutive months of heavy selling, with FPIs pulling out Rs 35,962 crore in January, Rs 22,611 crore in December, and Rs 3,765 crore in November.
• The turnaround is attributed to improving risk sentiment, a trade deal with the US, easing global uncertainties, and stability in domestic interest rate expectations.
• Breakthrough in India-US trade talks, stabilising US yields, and supportive measures in the Union Budget for FY26 also fueled the market rally.
• The appreciation of the rupee played a key role, with expectations for further stabilization and potential appreciation to below 90 per dollar by March 2026.