Foreign investors made a modest return to the Indian equities market in February, purchasing assets worth ₹5,107 crore. This came after a sharp pullout of over ₹25,000 crore in the previous month. While the figures reflect net purchases, analysts warn that the investors’ sentiment towards India remains cautious. This is likely due to the recent significant rise in stock prices, which has raised concerns about valuations and potential market corrections. Furthermore, expectations for a strong revival in foreign institutional buying in March seem unlikely. The caution exhibited by foreign investors reflects a more measured approach to the Indian stock market, as they carefully assess the dynamic economic and market conditions.