Global funds sell net 73.8 bln rupees of India equities prior trading day: NSDL

Global funds recorded a net sale of 55 billion rupees in Indian equities during the previous trading day, according to data from India's NSDL. This marks a reversal from earlier trends, as foreign institutional investors had previously outpaced domestic buyers in February 2026, with net inflows of $2.1 billion surpassing local institutional purchases of $1.8 billion. The recent outflow contrasts with the positive momentum seen earlier in the year, driven by improved earnings and a trade deal between India and the U.S.

The shift in investor sentiment may reflect broader market dynamics, including sector-specific adjustments. In February, global funds increased exposure to financial services and capital goods sectors while reducing positions in information technology amid concerns over artificial intelligence-driven valuation pressures. However, the latest data indicates a cautious stance, with foreign investors trimming equity holdings in Indian markets.

Analysts note that macroeconomic factors, such as global interest rate expectations and regional geopolitical developments, continue to influence fund flows. While India's equity market has shown resilience amid improving corporate earnings, short-term volatility remains a risk for investors. The NSDL data underscores the importance of monitoring foreign portfolio activity, which can significantly impact market liquidity and asset valuations in emerging markets like India.

Source: Bitget: National Securities Depository Limited (NSDL) data cited in Bitget.
Source: Bloomberg: Bloomberg analysis of February 2026 fund flows.