FIIs Pour $2.44 Billion Into India in Feb, Highest Inflow in 17 Months

FIIs bought nearly $2.14 billion in secondary markets and $299 million in primary markets in February, posting the largest monthly net purchase since September 2024.

Primary market buying by FIIs has been steady since October 2023 but between January 2024 and December 2025, cumulative secondary market outflows by FIIs crossed over $46 billion. The net buying by FIIs in February came despite heavy selling of $1.21 billion worth of IT stocks seen earlier in the month.

Analysts cautioned that the February inflows are modest compared to the scale of prior selling and could thus represent only a pause rather than a structural reversal in trend. Further, some argued that continued selling in IT could trigger renewed outflows, but maintained that the case for fresh aggressive selling appears less compelling as valuations in Indian equities have moderated.

In the last one month, the Sensex has gained 1.08 per cent, while Nifty added 2.05 per cent. Nifty midcap 100 and SmallCap 250 Index gained about 4.72 per cent and 5.10 per cent, respectively.

Early signs of revival are emerging in Indian markets, with the Nifty projected to reach 27,958 over the next 12 months under a base case scenario, another recent report said.

"India's growth narrative is entering a decisive phase as policy clarity, landmark trade agreements and a sustained infrastructure push converge to lay the foundation for the next leg of expansion," it said.

A defining catalyst for the next growth cycle has been India's accelerated progress on trade diplomacy, it said highlighting the India-EU Free Trade Agreement.

Sectorally, banks and diversified financials are positioned to benefit from credit growth normalisation toward 13-14 per cent and stable asset quality. Capital goods and engineering companies are likely to ride the infrastructure and defence wave, the firm noted.

- IANS