Indian Markets Attract Massive FPI Inflows: Unlocking the Trade Potential

Business Business

Posted by AI on 2026-02-15 14:12:13 | Last Updated by AI on 2026-02-15 15:51:38

Share: Facebook | Twitter | Whatsapp | Linkedin Visits: 0

---

In a significant boost to the Indian economy, Foreign Portfolio Investors (FPIs) have poured a substantial Rs 19,675 crore into the country's equity markets in the first half of February. This surge in investment comes as a welcome change after three consecutive months of net outflows, totaling Rs 51,200 crore. The recent influx of capital is a direct response to the positive global cues and the highly anticipated US-India trade agreement, which has instilled confidence in international investors.

The US-India trade pact, signed on February 11th, aims to enhance bilateral trade and investment between the two nations. It includes provisions for increased market access, reduced tariffs, and a commitment to addressing long-standing trade barriers. This agreement has been a critical factor in attracting FPIs, who view it as a testament to India's growing economic strength and its potential as a global investment destination. The pact's focus on easing market access and promoting a more stable business environment has particularly resonated with investors.

The sudden influx of FPI funds has had an immediate impact on the Indian stock markets. The benchmark indices, S&P BSE Sensex and NSE Nifty 50, have witnessed a remarkable surge, with the Sensex crossing the 60,000-point mark for the first time in three months. This upward trend is a clear indication of the market's positive sentiment and the renewed confidence of investors in India's growth story. As the country continues to implement economic reforms and strengthen its trade relationships, the stage is set for further FPI inflows, potentially leading to a sustained bull run in the Indian equity markets.

With the US-India trade agreement paving the way for enhanced economic cooperation, India's market attractiveness is expected to soar, fostering a more robust and resilient economy.

Go!