India FPI Inflows on US Trade Deal
Analysis based on 8 articles · First reported Feb 08, 2026 · Last updated Feb 08, 2026
The significant inflow of Foreign portfolio investment into India's equity markets signals renewed investor confidence, potentially leading to a market rally. The strengthening of the India — Indian rupee and a trade deal with the United States are key drivers, reducing geopolitical uncertainty and improving risk sentiment.
Foreign portfolio investment (FPIs) turned net buyers in Indian equities in the first week of February 2026, infusing over ₹8,100 crore. This marks a significant reversal after three consecutive months of heavy selling, during which FPIs withdrew a net ₹1.66 lakh crore in 2025. The turnaround is attributed to improving risk sentiment, a breakthrough in India-United States trade talks, stabilizing US bond yields, and supportive measures announced in India's Union Budget for FY26. The appreciation of the India — Indian rupee against the United States also played a crucial role in boosting investor confidence. Market participants remain cautiously optimistic, with further inflows contingent on sustained corporate earnings growth and contained global trade tensions.
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