On Thursday, foreign portfolio investors (FPIs) made a significant comeback in the Indian equity market, reversing a brief selling trend. After a day of pulling back, FPIs turned net buyers, acquiring stocks worth an impressive ₹3,239.14 crore. This shift marked a notable change, as domestic institutional investors (DIIs) shifted gears, becoming net sellers for the first time in nearly a month.
FPI Activity in the Indian Stock Market
In the recent trading session, FPIs not only focused on equity purchases but also ventured into index and stock futures. Their buying spree highlighted a keen interest in the market, with a total investment of ₹2,933.44 crore in index futures and ₹3,253.02 crore in stock futures. However, they also offloaded index and stock options, selling them for ₹66,511 crore and ₹2,056.7 crore, respectively.
- Total FPI Purchases: ₹3,239.14 crore
- FPI Investment in Index Futures: ₹2,933.44 crore
- FPI Investment in Stock Futures: ₹3,253.02 crore
DII Selling Pressure
In contrast, domestic institutional investors experienced a shift in momentum, becoming net sellers after 29 consecutive sessions of purchasing. They offloaded equities worth ₹3,136.02 crore, marking their first selling instance since February 4, when they had sold equities valued at ₹430.7 crore. This sudden change in strategy by DIIs adds an intriguing dynamic to the current market trends.
Insights into Futures and Options
As the market approaches the March 27 expiry, the open interest for Nifty futures has seen fluctuations. The total value of outstanding positions for FPIs in the derivatives segment has risen, with the long-to-short ratio maintaining a balance of 42:58. Interestingly, the overall open interest in Nifty 50 futures dropped from ₹37,776.14 crore to ₹35,762.08 crore by the end of the March expiry.
Current Market Trends
- Nifty March Futures: Increased by 0.95%, reaching 23,069.90, with an open interest decline of 6.26%.
- Active Call and Put Strikes: The highest activity was noted at the 24,000 call strikes, while the 22,000 put strikes registered the maximum open interest.
Long-Short Ratio Analysis
The overall long-short ratio for foreign investors currently stands at 1.40, indicating a balanced market sentiment. This comprehensive view of the FPI and DII activities reflects the dynamic nature of the Indian equity market, showcasing the constant interplay between foreign and domestic investors.
As investors keep a close watch on these developments, the market’s direction remains a topic of keen interest, with strategic decisions on both sides shaping the investment landscape.
