FIIs sold Rs 11.12 billion worth of shares in cash market and Rs 5.2 billion worth of index futures on Tuesday, according to NSE data. (PTI image for representation only)
FIIs greeted RBI governor Raghuram Rajan’s surprise move to cut the repo rate by 50 bps on Tuesday with heavy selling in cash, and shorts in derivatives.
They sold Rs 11.12 billion worth of shares in cash market and Rs 5.2 billion worth of index futures on Tuesday, according to NSE data.
FIIs bought Rs 36.14 billion worth of index options on Sept 29, which analysts attribute to bearish positions in NSE index and NSE Bank index.
According to analysts, data shows that FIIs are looking to use the rate cut led rise as another opportunity to sell; from a net perspective shorts were added yesterday.
“There is just too much going on globally for a sustained rise to materialise. Fed, China, Europe, EM, VW, Glencore or something else may keep at tab on bulls,” a derivative analyst at a foreign broker told Reuters.
“Stock futures are still net long. Index options suggest FIIs are prepared for any downside surprises,” Akshata Deshmukh derivatives strategist at Dolat Capital Market Pvt Ltd said.
Despite all measures by govt. and RBI, India is not as safe and attractive, as it was last year, according to traders.
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