Highest FII investment since September 2024 recorded in February with net buying of $2.44 billion
Mumbai (The Uttam Hindu): According to exchange data released on Thursday, Foreign Institutional Investors (FIIs) recorded their biggest investment in 17 months during February, with a net inflow of nearly $2.44 billion.
During the month, FIIs invested around $2.14 billion in the secondary market and $299 million in the primary market, marking the highest monthly net buying since September 2024.
While FIIs have consistently remained buyers in the primary market since October 2023, they had withdrawn over $46 billion from the secondary market between January 2024 and December 2025.
The February net buying came despite heavy selling of about $1.21 billion in IT stocks earlier in the month.
Analysts have advised caution, stating that the February inflow remains small compared to previous large outflows and may represent a temporary pause rather than a sustained trend shift.
Some experts believe that continued selling in the IT sector could lead to renewed outflows. However, they also note that Indian market valuations have now become balanced, reducing the likelihood of aggressive selling.
Over the past month, the Sensex has gained 1.08 percent, while the Nifty rose by 2.05 percent. The Nifty Midcap 100 and Smallcap 250 indices also registered gains of 4.72 percent and 5.10 percent respectively.
A recent report indicates early signs of recovery in the Indian market, projecting that under the base-case scenario, the Nifty could reach 27,958 in the next 12 months.
The report highlights that policy clarity, major trade agreements and continued focus on infrastructure are helping build the foundation for the next phase of growth.
It also noted that developments such as the India–EU Free Trade Agreement could act as key catalysts for the next growth cycle.
At the sectoral level, banking and diversified financial companies may benefit from credit growth stabilizing at 13–14 percent along with steady asset quality. Meanwhile, capital goods and engineering firms are expected to gain from rising investments in infrastructure and defence.