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Global risk sparks $497 million flight to India power stocks by FIIs in February

Foreign investors pour capital into Indian power stocks, drawn by rising electricity needs from data centres and AI, amid global energy uncertainty and a supportive regulatory environment.

Mar 16, 2026 &03591616202631; 06:59 UTC www.livemint.com Trending 4/5

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Positive for markets

Sentiment score: +75/100

Moderate impact Medium-term (weeks)

WHAT THIS MEANS

Foreign institutional investors deployed $497 million into Indian power stocks in February, driven by surging electricity demand from data centers and AI infrastructure amid global economic uncertainty. This capital inflow reflects confidence in India's energy sector fundamentals and supportive regulatory framework.

AI CONFIDENCE

85% Very high

SENTIMENT GAUGE

NEWS POWER SCORE

AFFECTED ASSETS

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NTPC.NS

NTPC.NSStock

Expected to rise

Major beneficiary of FII inflows into Indian power sector; positioned to capture AI/data center electricity demand

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RELIANCE.NS

RELIANCE.NSStock

Expected to rise

Energy infrastructure exposure benefits from structural demand growth in power generation

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POWERGRID.NS

POWERGRID.NSStock

Expected to rise

Transmission infrastructure plays critical role in distributing increased power demand from data centers

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FTSE MIB (Italy)

FTSEMIB.MIIndex

High volatility expected

European indices may see mixed signals as capital flows to emerging markets amid global risk-off sentiment

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Euro / US Dollar

EURUSDCurrency

Expected to decline

Capital flows to India support INR strength against EUR as investors seek emerging market exposure

PRICE HISTORY

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⚡ SUGGESTED ACTION

Long Indian power stocks (NTPC, POWERGRID) on structural AI/data center demand thesis with 12-18 month horizon. Consider hedging currency exposure via EURUSD shorts given INR appreciation potential from sustained FII inflows.

KEY SIGNALS

Structural demand growth from AI and data center expansion in IndiaFII confidence despite global economic uncertainty indicates sector resilienceSupportive regulatory environment attracting foreign capitalEmerging market capital rotation from developed marketsLong-term electricity demand tailwinds from technology sector growth

SECTORS INVOLVED

Power & UtilitiesEnergy InfrastructureRenewable EnergyData Center Services

Analysis generated on Mar 16, 2026 at 10:55 UTC

Disclaimer: This analysis is generated by artificial intelligence for informational purposes only and does not constitute financial advice, investment recommendation, or solicitation. Original reporting by Livemint. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

Global risk sparks $497 million flight to India power stocks by FIIs in February

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