Is the $21 billion FII exodus ending? One major risk still stands in the way

Foreign institutional investors are cautiously returning to Indian stocks after a significant exodus, driven by a strengthening rupee and an interim trade deal with the US. However, a sustained comeback hinges on improving corporate earnings, which have remained a concern, posing a key risk to continued foreign inflows.

Feb 12, 2026 - 16:01
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Is the $21 billion FII exodus ending? One major risk still stands in the way
Foreign institutional investors are cautiously returning to Indian stocks after a significant exodus, driven by a strengthening rupee and an interim trade deal with the US. However, a sustained comeback hinges on improving corporate earnings, which have remained a concern, posing a key risk to continued foreign inflows.

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