The Indian election is reaching its climax, with foreign investors positioning themselves strategically as the final phase approaches on June 1. Exit polls will begin to emerge shortly after polling ends, and the significant verdict day is set for June 4.
By the end of the May 2024 derivatives expiry, the value of outstanding positions, or Open Interest, in the derivatives segment has notably decreased for foreign institutional investors (FIIs) in the Nifty Futures.
FIIs Unwinding Long Positions
The total Open Interest value in Nifty 50 Futures fell by Rs 6,630 crore on May 30, dropping from Rs 39,310 crore the previous day to Rs 32,680 crore. This decline was primarily driven by foreign investors, whose Open Interest value decreased by Rs 8,530 crore.
In Nifty Options, FIIs increased their positions by Rs 1.39 lakh crore in notional terms (calculated as Strike Price multiplied by Open Interest) at the end of the May 30 expiry. The premium Open Interest value for Nifty Options stood at Rs 6,405 crore, slightly down from Rs 6,484 crore the previous day.
Regarding Nifty Futures long positions, FIIs reduced their holdings by 2.06 lakh contracts on May 30, while their short positions in Nifty 50 Futures increased by 86,482 contracts.
Additionally, the overall long-short ratio for foreign investors has declined from 1.28 to 0.98, indicating a shift in their market stance.
