February 2026 Sees Highest FII Inflows in 17 Months Amid Decline in Domestic Equity Investments

In February 2026, foreign institutional investors (FIIs) recorded their highest net inflows in 17 months at approximately $2.44 billion, driven by purchases in both primary and secondary markets despite ongoing selling in IT stocks. Conversely, domestic institutional investors (DIIs) reduced their equity investments to a 10-month low, influenced by subdued market returns and increased interest in precious metals. Market analysts suggest that while FIIs' inflows indicate early signs of revival, the overall trend remains cautious amid mixed sector performance and moderate equity valuations.