February Fortnight Review: FPIs Turn Buyers, DII Buying Slows to a 10-month Low, MFs Pause with Net Equity Selling
FPI Buying: Clear Pivot Toward Cyclicals & Capex – On the buy side, FPIs made a strong rotational bet on the domestic capex cycle. Capital Goods (₹8,032 Cr) topped inflows, followed by sustained buying in Financial Services (₹6,175 Cr) and Oil, Gas & Consumable Fuels (₹4,678 Cr). Interest also stayed firm in Metals & Mining (₹3,279 Cr) and Power (₹3,272 Cr), while incremental additions in Construction (₹1,745 Cr), Services (₹1,286 Cr) and Consumer Services (₹1,066 Cr) reinforced the broader shift toward cyclical, growth-linked sectors.
FPI Selling: IT Takes the Biggest Hit – FPIs turned aggressive sellers in Information Technology (₹10,956 Cr)—the dominant outflow for the fortnight, signalling a sharp de-risking from the tech pocket. Outside IT, selling remained relatively contained and selective, led by FMCG (₹1,182 Cr) and Healthcare (₹1,051 Cr). Mild profit booking was seen in Consumer Durables (₹434 Cr), while flows were largely negligible in Telecommunication (₹106 Cr), Textiles (₹67 Cr), Utilities (₹14 Cr) and Diversified (₹2 Cr).
FPIs Back in Buy Mode: FPIs shifted gears in 1st–15th Feb 2026, turning net buyers in equities at ₹19,675 Cr—their first net-buying since October 2025, indicating a clear improvement in risk appetite. Notably, the bulk of this buying came from the secondary market (₹18,130 Cr), while primary market/IPO investments contributed ₹1,545 Cr, highlighting that FPI participation was led by on-market accumulation rather than just new issuances.
DIIs Buying Moderates to the Lowest Since April 2025 – Domestic Institutional Investors (DIIs) continued to support equities during 1st–15th Feb 2026, with net buying of ₹9,776 Cr. However, the pace of buying moderated sharply, marking the lowest fortnightly DII inflow since April 2025, even as domestic flows remained positive and helped cushion the market amid shifting foreign and mutual fund activity.
Mutual Funds Turn Net Sellers in Feb; First Equity Sell Since Apr’25 – Mutual Funds (MFs) turned net sellers in equities during 1st–15th Feb 2026, with outflows of ₹603 Cr—their first fortnightly equity-selling in CY2026 and the first such instance since April 2025. However, on a CY2026-to-date basis (1st Jan–15th Feb), MFs still remain net buyers of ₹41,751 Cr in equities, indicating overall participation remains supportive despite the brief pause.
For a comprehensive understanding and more insights, please go through our detailed report.