Earlier, on September 1 and November 3 last year, FPIs sold shares worth $1 billion and $857.2 million respectively in the secondary market. After being net sellers in each of the three months to January 2026, FPIs made a beeline to Indian equities in February amid hopes of easing global trade ties. The outflows seen on the first trading day of March, thus, raise concerns about the sustainability of foreign fund flows in the near term as the broader geopolitical conflict is likely to affect global energy prices, and consequently, the Indian economy, which is a net energy importer.
InstitutionsAmong geopolitical risks
In February, the total net inflow of FPIs was $2.5 billion (₹22,615 billion) including primary and secondary markets. In six of the 11 months of FY26, FPIs were net sellers, reflecting their lower exposure to Indian equities amid relatively higher valuations compared to some emerging markets. However, their sales during this period were better than the previous year’s period.
In the 11 months to February, FPIs sold nearly $7 billion, including in the primary and secondary markets. That was half of the $14.2 billion in sales the previous fiscal year. In addition, FPIs halved their investment in the primary market to $7.6 billion compared to last year, indicating a more cautious stance when approaching the initial public offerings (IPO) and qualified institutional purchase (QIP) segments.
