Foreign portfolio investors (FPIs) closed the week ending February 27, 2026 as net buyers to the tune of ₹6,062.41 crore across all asset classes, according to data from the National Securities Depository Ltd (NSDL). However, a sharp reversal on the final trading day — with FPIs turning net sellers of ₹2,778.36 crore — tempered what had otherwise been a week of consistent inflows and capped a broadly positive month for foreign flows into Indian markets.
Equity remained the dominant driver of the week’s net inflows, with FPIs net buying ₹5,703.37 crore in stocks across the five-day period. The momentum was strongest on February 24, when equity net inflows surged to ₹4,397.25 crore — the highest single-day reading of the week. That was followed by net equity purchases of ₹2,887.62 crore on February 25 and ₹1,092.59 crore on February 26. The week, however, opened on a weak note, with FPIs recording a marginal net equity outflow of ₹244.93 crore on February 23. The most notable reversal came on February 27, when net equity outflows hit ₹2,429.16 crore, pulling the weekly aggregate lower.
On the debt side, the week presented a mixed picture. Debt-General Limit saw net inflows of ₹850.02 crore on February 23 and ₹951.42 crore on February 25, but the segment turned negative on February 27, with outflows of ₹68.55 crore. Debt-FAR, which tracks investments in fully accessible government bonds, delivered a positive contribution for most of the week, with the sharpest single-day inflow of ₹797.82 crore on February 26, before flipping to an outflow of ₹103.79 crore on Friday. Debt-VRR recorded net outflows of ₹128.80 crore on February 27 alone, reversing gains seen earlier in the week.
The day-wise totals tell the story clearly. After a modest net inflow of ₹650.26 crore ($71.51 million) on February 23, FPIs poured in ₹4,180.21 crore ($460.65 million) on February 24 — the week’s peak. Net investments then moderated to ₹1,917.22 crore ($210.76 million) on February 25 and rose again to ₹2,093.08 crore ($230.13 million) on February 26, before the week closed with a net outflow of ₹2,778.36 crore ($305.63 million) on February 27.
Placing the week in a broader monthly context, Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, noted that “FIIs have been buyers on most days in February in a clear shift in their investment strategy towards India.”
He added that “the total FPI investment through exchanges in February through 27th stood at ₹19,782 crore,” and that with primary market additions of ₹2,832 crore, “the total investment in February through 27th stands at ₹22,614 crore.”
The sectoral composition of FPI activity in February has not been uniform. Vijayakumar pointed out that “FPIs had sold heavily in IT stocks due to the Anthropic shock and the continuing weakness in this segment. But they were buyers in financial services and capital goods.” He further cautioned that “FIIs are likely to wait and watch how things evolve before making further commitments in emerging markets,” citing the Middle East conflict as an added uncertainty.
Varun Gupta, CEO of Groww Mutual Fund, placed the monthly inflows in sharper relief, saying that “FII inflows into Indian equities have touched nearly $2.5 billion so far this month — the strongest reading since September 2024.” However, he urged caution against over-interpretation: “We would be careful about extrapolating one month of data. The durability of foreign flows will ultimately depend on the strength and consistency of India’s long-term earnings trajectory.”
N. ArunaGiri, CEO of TrustLine Holdings, offered a more cautious read on market dynamics even as flows improved. “When the market is fragile, good news gets ignored and bad news gets amplified,” he said, adding that “unless a major trigger emerges, the trend is unlikely to change meaningfully.”
On the opportunity it presents, he noted, “the prudent thing to do in such a sell-off is to grab the opportunities when the valuation is attractive instead of trying to time the bottom.”
Benchmark indices reflected the underlying caution. The Nifty 50 declined 1.54 per cent for the week, shedding 392 points to close at 25,178.65, while the BSE Sensex fell 1.84 per cent, losing 1,527 points to settle at 81,287. Domestic institutional investors partially offset FPI selling, purchasing equities worth ₹24,312 crore during the week.
Published on February 28, 2026
