FPIs turn net buyers in Feb; invest Rs 8,100 cr in a week on US trade deal
GS3Economy · S&T · Environment · Security· Capital markets & SEBI· Prelims·
Why in news
Foreign Portfolio Investors (FPIs) reversed their outflow trend by investing Rs 8,129 crore in India during February 2026.
Background
FPIs invested Rs 8,129 crore in India in February 2026. The shift is attributed to improved risk appetite, easing global tensions, and positive developments in India's trade relations with the US.
Facts for Prelims
- FactFPIs invested Rs 8,129 crore in India during February 2026
- FactFPI investment trend reversed from previous months of significant withdrawals
- FactInvestment shift linked to India's trade relations with the US
For Mains
Q. Analyze the factors influencing the volatility of Foreign Portfolio Investment (FPI) flows in India and their impact on domestic capital market stability.
Dimensions to cover in your answer
- External vulnerability: Sensitivity of capital flows to global trade policies and geopolitical tensions
- Market sentiment: Correlation between corporate earnings momentum and investor risk appetite
- Policy linkage: Impact of bilateral trade agreements on attracting foreign portfolio capital
Keywords: Capital Flows · Market Volatility · Risk Appetite · Portfolio Investment · Trade Relations
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