Foreign portfolio investors (FPIs) infused Rs 22,615 crore into Indian equities, marking the highest monthly inflow in 17 months, driven by the interim India-US trade deal, correction in domestic market valuations and robust third-quarter corporate earnings.

The latest buying follows three consecutive months of heavy selling. FPIs pulled out Rs 35,962 crore in January, Rs 22,611 crore in December and Rs 3,765 crore in November, according to data from the depositories.

Overall, FPIs have withdrawn a net Rs 1.66 lakh crore (USD 18.9 billion) from Indian equities in 2025, making it one of the worst periods for foreign flows. The outflows were triggered by volatile currency movements, global trade tensions, concerns over potential US tariffs and stretched equity valuations.

According to the data, FPIs invested Rs 22,615 crore in February. This was the highest monthly inflow since September 2024, when they had invested Rs 57,724 crore.

The inflow was driven by secondary market buying, signalling renewed foreign confidence post-2025 outflows, said Vinit Bolinjkar, Head of Research at Ventura.

Javed Khan, Senior Fundamental Analyst at Angel One Ltd, said three key catalysts supported the inflow. These included India-US trade agreements and corrections in India’s market valuation. Additionally, Q3 FY26 earnings grew 14.7 per cent, suggesting confidence in the growth narrative.
Echoing similar views, Varun Gupta, CEO of Groww Mutual Fund, attributed the renewed inflows to improving earnings momentum, moderation in valuations from peak levels and early signs of easing trade uncertainty, with India concluding multiple FTAs, including those with the EU and UK.Sectorally, FPIs were aggressive buyers in financials and capital goods, while continuing to pare exposure to the IT sector. The segment saw outflows of Rs 10,956 crore amid concerns over AI-led disruption.

“FPIs had sold heavily in IT stocks due to the Anthropic shock and continued weakness in the segment. However, they turned buyers in financial services and capital goods,” said VK Vijayakumar, Chief Investment Strategist at Geojit Investments.

Looking ahead, Khan said March flows are expected to remain positive. Q4 earnings will determine whether 15 per cent earnings growth in FY27 is achievable, while rupee stability below Rs 91 to the dollar provides comfort on returns.

Vijayakumar said FPIs are likely to adopt a wait-and-watch approach before increasing exposure to emerging markets. However, improving GDP growth prospects and a healthy corporate earnings outlook for FY27 bode well for medium-term flows.

Meanwhile, the ongoing conflict in the Middle East has triggered a risk-on sentiment in financial markets. Its impact on crude prices and currency movements remains a key monitorable, he added.

Nifty ended sharply lower on Friday amid broad-based selling pressure. Auto, financials and FMCG stocks were the key laggards, while the IT sector witnessed selective buying. The index has declined steeply after remaining below its key short-term moving average for three consecutive sessions.

Rupak De, Senior Technical Analyst at LKP Securities, noted that the index has also slipped below the 200-day moving average (DMA), signalling continued weakness in the near term. “The RSI indicator has turned sharply bearish. In the short term, the index may remain under selling pressure, with rallies likely to be sold into. Immediate support is placed at 25,000 and 24,750, while resistance is seen at 25,370,” De said.

Here are 2 stock recommendations for Monday:

Buy RR Kabel at Rs 1,562 | Upside: 6%

Stop Loss: below Rs 1,515

Target: Rs 1,655
RR Kabel is showing a bullish continuation setup on the weekly timeframe. Price has broken above a multi-month consolidation zone near Rs 1,520–Rs 1,550, confirming a range breakout. The stock is trading above its 20/50/100/200 EMAs, indicating strong trend alignment and medium-term bullish structure. The 20 EMA has crossed above the 50 EMA, supporting positive momentum. RSI (14) is near 58–60, holding above the midline without being overbought, suggesting further upside potential. Volume expansion on breakout strengthens the move. Higher highs and higher lows confirm trend reversal from the previous corrective phase.(Drumil Vithlani, Technical Research Analyst, Bonanza Portfolio)

Buy Siemens at Rs 3,418 | Upside: 6%

Stop Loss: Rs 3,315 – Rs 3,330

Target: Rs 3,590 – Rs 3,620

Siemens Limited has given a fresh breakout on the daily chart, closing decisively above recent swing highs with strong bullish momentum. The price is trading above its 20/50/100/200 EMAs, indicating a well-established uptrend. RSI is hovering near the 65 zone, reflecting strengthening momentum without entering extreme overbought territory. Volume expansion on the breakout further validates buying interest. Traders can consider initiating fresh long positions at current levels, maintaining strict risk management as long as the price sustains above the breakout zone.

(Drumil Vithlani, Technical Research Analyst, Bonanza Portfolio)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Asian investment into Australia reached a series of record-breaking milestones in 2025, with Japan, Korea, Singapore, and Malaysia reshaping bilateral economic ties through landmark deals and strategic capital deployment, even as global macroeconomic headwinds tested investor confidence across the region.

Key takeaways

• Japan’s M&A market surged 83.9% to US$218.5 billion in 2025, marking the third consecutive year of record Japanese investment into Australia.
• Korea’s POSCO sealed a landmark A$1.2 billion lithium deal while Hanwha cemented its defence presence through a 19.9% stake in Austal, signalling Asia’s deepening strategic ties with Australia.
• Critical minerals, defence, real estate, and renewables are set to dominate Asia-Pacific deal flow into Australia throughout 2026.

These are the central findings of MinterEllison’s 2026 Asia Report: Year in Review, the fifth annual edition of the firm’s flagship Asia practice publication tracking cross-border deal activity, regulatory shifts, and sector-by-sector investment trends across Australia’s key Asian partner economies.

Japan: Unprecedented M&A and Historic Leadership

Japan’s M&A market reached unprecedented levels in 2025, recording 3,472 transactions valued at a combined US$218.5 billion, an extraordinary 83.9% surge compared to 2024.

Sanae Takaichi became Japan’s first female Prime Minister, signalling a decisive pivot toward economic growth and a commitment to lifting defence spending to 2% of GDP.

Japanese investment in Australia reached record levels for the third consecutive year, with real estate, energy security, and data centres emerging as priority sectors. The landmark A$55 billion Mogami-class frigate contract further cemented defence collaboration as a key pillar of the bilateral relationship heading into 2026.

Korea: Lithium Billions and a Expanding Defence Presence

Korea delivered one of the year’s most consequential bilateral transactions. POSCO Holdings committed A$1.2 billion into Mineral Resources’ lithium assets, securing a 30% interest and long-term access to spodumene concentrate from Tier-1 assets at Wodgina and Mt Marion.

Meanwhile, Australia-Korea cross-border investment volumes grew 20% year-on-year in the first three quarters of 2025. On the defence front, Hanwha’s stake in Austal Limited was approved at 19.9%, positioning the Korean conglomerate as Austal’s largest single shareholder and reflecting deepening strategic industrial ties between the two nations.

China: Record Trade Surplus, Subdued M&A

China’s domestic economy showed signs of stabilisation in 2025, posting a record US$1.189 trillion trade surplus while accelerating overseas manufacturing investment across Southeast Asia.

Inbound M&A from Chinese companies into Australia remained subdued, as FIRB approval challenges continued to constrain deal activity.

Australia charted an independent China strategy under its re-elected government, prioritising trade while maintaining security commitments. MinterEllison anticipates 2026 deal flow will emerge primarily through minority equity interests, joint ventures, and licensing agreements in sectors including EVs, mining, biotech, and fintech.

Singapore and Malaysia: Capital, Infrastructure, and Renewables

Singapore delivered political certainty following Prime Minister Lawrence Wong’s landslide election victory, though overall M&A activity softened amid US-driven global headwinds.

Capital markets reform initiatives deployed approximately S$3.95 billion to local asset managers, while IPO fundraising reached its highest level since 2019 at S$2.54 billion. Australian real estate remains a key deployment target for Singapore-based capital in 2026.

Malaysia rounded out a strong year for Southeast Asian investment into Australia, backed by solid GDP growth of 4.7 to 5.0%. Sime Darby Property acquired the largest Melbourne CBD development site in five years, while Gamuda Berhad secured infrastructure contracts exceeding RM8 billion and entered Tasmania’s renewable energy market. Fortescue’s green hydrogen collaboration in Sarawak highlighted the growing maturity of bilateral clean energy ties.

The 2026 Asia Report presents a region demonstrating strategic purpose despite a volatile global backdrop. Critical minerals, defence, real estate, and renewables are expected to drive deal activity across all five markets in the year ahead, reinforcing Australia’s position as a preferred destination for Asian capital.

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