EM flows gathering pace as investors double down on de-dollarisation trade
Foreign Portfolio Investors (FPIs) staged a sharp turnaround in early February, pumping Rs 19,675 crore into Indian equities in the first fortnight, supported by the US-India trade deal and easing global macro concerns. The inflows follow 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, according to data from depositories. Overall, in 2025, FPIs pulled out a net Rs 1.66 lakh crore (USD 18.9 billion) from Indian equities, marking one of the worst periods for foreign flows. The selling was driven by volatile currency movements, global trade tensions, concerns over potential US tariffs and stretched equity valuations. According to the data, FPIs invested Rs 19,675 crore in this month (till February 13). Himanshu Srivastava, principal manager - research, at Morningstar Investment Research India, said the recent buying was supported by easing global macro concerns, particularly softe
The RBI has removed the Rs 2.5 trillion cap under the Voluntary Retention Route and merged it with the General Route, easing exit constraints and simplifying compliance for foreign bond investors
Share across debt, equity rose from 39.7% a year ago to 41% in Jan 2026
The move follows Securities and Exchange Board of India operationalising a unified digital workflow in January 2026
The RBI has removed the Rs 2.5-trillion investment cap under the voluntary retention route for FPIs to deepen bond markets, enhance capital flow stability and encourage long-term foreign participation
Since October 2025, Bank of India, Union Bank of India and Canara Bank have surged between 29 - 34 per cent. FPIs have increased stake in select PSU Banks by up to 3 per centage points.
Foreign investors favoured telecom and oil stocks amid broad equity selloffs
Samir Arora says India's policy stability, improving earnings and rising domestic flows leave no structural reason for global investors to stay underweight
Foreign investors have pulled out Rs 11,820 crore (USD 1.3 billion) from Indian equities in the first week of this month, primarily driven by the sharp depreciation of the rupee. This sharp withdrawal follows a net outflow of Rs 3,765 crore in November, further pressuring markets. These outflows come after a brief pause in October, when FPIs invested Rs 14,610 crore, breaking a three-month streak of massive withdrawals -- Rs 23,885 crore in September, Rs 34,990 crore in August, and Rs 17,700 crore in July. According to NSDL data, foreign portfolio investors (FPIs) withdrew a net amount of Rs 11,820 crore from Indian equities in the first week of this month. This takes the total outflow for 2025 to Rs 1.55 lakh crore (USD 17.7 billion). Analysts attribute the renewed selling primarily to currency concerns. The rupee has depreciated nearly 5 per cent this year, prompting FPIs to pull out during such periods, said VK Vijayakumar, Chief Investment Strategist at Geojit Investments. Ad
After a brief pause in October, foreign investors resumed selling, pulling out a net Rs 3,765 crore from Indian equities in November, driven by global risk-off sentiment, volatility in global tech stocks and selective preference for primary markets over secondary markets. This dip in November came right after a net inflow of Rs 14,610 crore in October, an uptick that had broken a three-month streak of withdrawals -- Rs 23,885 crore in September, Rs 34,990 crore in August, and Rs 17,700 crore in July, according to depository data. The flow trend through November was shaped by a combination of global and domestic factors. On the global front, uncertainty around the US Federal Reserve's rate-cut trajectory, a firm US dollar, and weak risk appetite across emerging markets kept foreign investors cautious. Persistent geopolitical tensions and volatile crude prices further reinforced the risk-off tone, said Himanshu Srivastava, Principal, Manager Research, Morningstar Investment Research .
Sebi Chairman Tuhin Kanta Pandey said the regulator is examining whether FPIs can net same-day trades - a move aimed at easing operational burden and reducing costs for overseas investors
Domestic mutual funds extended their record-breaking run, with ownership climbing to an all-time high of 10.9 per cent (Active: 9.0 per cent, Passive: 1.0 per cent).
The BSE Sensex climbed 720.20 points, or 0.85 per cent, to hit an intraday high of 84,932.08, while the NSE Nifty50 advanced 210.80 points, or 0.81 per cent to 26,005.95
Nifty and Sensex had closed at record levels on September 26, 2024, while the broader Mid and Small-cap gauges hit a record on September 24 last year
Overall, FPI assets have grown 139.5% since August 2020, while sovereign wealth fund investments have grown 155.2%
Timed tugs tilt discretionary sectors, letting defensive and capital-heavy names take the lead
Sebi is considering new relaxations for foreign portfolio investors, including a common KYC system and wider use of India Digital Signature to simplify onboarding and compliance
Sebi's SWAGAT-FI proposal aims to give trusted foreign investors a streamlined, low-cost entry to India's capital markets with simplified registration and compliance
The period saw total net FPI outflows amounting to ₹77,898 crore. IT stock saw selling to the tune of ₹30,600 crore, while FMCG saw pullout of ₹18,178 crore