FPIs' short positions on Nifty most since March 2020, shows data

Foreign portfolio investors (FPIs) had outstanding short positions worth $1.8 billion on the Nifty futures index this week — the highest since March 6, 2020. In March 2020, the Nifty had declined 23 per cent amid the outbreak of the Covid-19 pandemic.

FPIs have not just built aggressive short positives on the index futures, they have also unwound their long positions in the single stock futures, shows an analysis by Nuvama Institutional Equities. Experts see it as FPIs positioning themselves to benefit from a fall in the market. However, if sentiment takes a positive turn, they will be forced to