Foreign Inflows Cross $2 Billion In Indian Equities Over Nine Sessions

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Last Updated: 10th February 2026 - 03:29 pm

Summary:

Foreign investors have turned net buyers in Indian equities, purchasing over $2 billion across nine trading sessions between late January and early February. The inflows coincided with a sharp market rebound, improved valuations after a recent correction, and easing trade-related uncertainty. Domestic institutional investors also remained net buyers during the same period.
 

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Foreign institutional investors recorded net equity purchases across six of the nine trading sessions between January 28 and February 6. They were marginal sellers in three sessions. On February 9, FIIs bought shares worth ₹2,223 crore on a provisional basis, extending the buying streak.

The renewed inflows followed a period of sustained selling earlier in the year, when foreign investors had reduced exposure amid global risk aversion and valuation concerns.

Valuations And Market Performance

After the recent correction, benchmark indices are trading closer to their long-term valuation averages. The Sensex and Nifty are currently valued at around one-year forward price-to-earnings multiples of 20.5 times and 20.1 times, respectively, broadly aligned with historical norms.

Broader markets outperformed during the period. The BSE MidCap 150 index gained 5.66%, while the BSE SmallCap 250 index advanced 6.3%. The Sensex and Nifty both rose over 3%.

Domestic Investors Remain Supportive

Domestic institutional investors continued to provide support to the equity markets, purchasing shares worth more than ₹8,973 crore over the same period. 

The combined participation of foreign and domestic investors coincided with a broad-based rally across sectors.

Trade Developments And Policy Backdrop

Market sentiment improved following recent trade-related clarity, including progress on bilateral agreements that reduced uncertainty for export-oriented sectors. The Union Budget’s emphasis on long-term growth and infrastructure spending also contributed to improved investor confidence.

The Reserve Bank of India’s recent decision to maintain policy rates unchanged added to stability in financial conditions, supporting risk appetite in domestic equity markets.

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