Foreign portfolio investors have reduced cash market selling in Indian stocks but continue to show caution through derivatives positions. The moves come amid a modest gain in the Nifty index.
Foreign investors remain cautious about Indian stocks despite some cash market buying. Their derivative bets continue to signal doubt, influenced by a fragile US-Iran peace deal, a weakening rupee, and more appealing opportunities elsewhere in Asia.
The Nifty index recorded a modest gain. However, a high long-short ratio in futures points to a lack of strong bullish sentiment among these investors.
Market observers note that FPIs have tempered their selling activity in the cash segment while maintaining defensive stances in derivatives. Factors such as crude oil prices and broader regional flows are also cited as contributing to the cautious approach.
