After weeks of Adani crisis, FPIs reduce short bets on Indian markets

Foreign Portfolio Investor (FPI) short positions in the Indian index futures segment have halved since last week. FPI held his short position net of 110,000 contracts in the index futures segment last week, according to Indiacharts (derivatives market tracker) data. This is primarily made up of Nifty and Bank Nifty, which has dropped to 63,675 as of Tuesday.

's data also showed FPI short positions in the index derivatives segment suddenly increased to an index level on February 2, after falling on January 25 when volatility peaked, according to Hindenburg's report. It shows that we have reached 112,000 contracts of derivatives. , was building a short position. Since then, net short positions in index futures have increased exponentially. “In the aftermath of the tick crisis, the FPI took large short positions in index futures. Stable spot buying reflects a return to risk-taking by foreign investors. A break above 17,960 should further short him into coverage and improve market sentiment,” said Indiacharts strategist Rohit Srivastava.

FPIs Net Buyers of Cash Shares
Preliminary stock data show FPIs was a buyer of cash shares for his three consecutive days through Tuesday. FPI till this month said he was a net seller of Rs 2,786 crore in the spot stock market. In the index futures segment, FPI said he had net buyers of Rs 288.5 billion so far in February, suggesting a reduction in previously built short positions. In the equity futures segment, FPI has net buyers of Rs 2,677 crore so far in February. The data show that index futures traded SEK 3,773, equity futures SEK 1,994 in a single day this year and £14.231 billion in December 2022, so there will be significant growth in the futures segment. FPI buying was spotted on Tuesday. Adani Enterprises, Adani Ports, SEZ, and his two listed cement companies in the group, Ambuja and ACC, have seen lower volatility and even benefited greatly from the February 2 lows. However, shares of other Adani Group companies, including Adani Total Gas, Adani Power, Adani Greens and Adani Transmissions, have fallen since Adani Enterprises canceled a follow-up public offering on February 1. It has fallen by 5% in consecutive sessions.