FIIs increase net shorts, Infosys leads short covering in September series

Foreign institutional investors (FIIs) saw a slight increase in their net short positions during the September series, according to an analysis by Nuvama. This comes amidst a resilient market that marked its fifth positive F&O expiry out of the past six series, even despite a downturn in the latter half of the series.

Infosys (NS:) emerged as a leader in short covering among 14 Nifty50 stocks. High-net-worth individuals (HNIs) and retail investors, meanwhile, increased their long positions in single stock futures (SSF).

Several stocks witnessed short covering, including Eicher Motors, State Bank of India (SBI), Bajaj Finance, Bharat Petroleum Corporation, Grasim Industries, and UPL. On the other hand, Power Grid Corporation of India and Larsen & Toubro experienced significant long build-ups.

The findings suggest a mixed sentiment amongst different investor groups as they navigate through the current market conditions. The increased long positions from HNIs and retail investors in SSF contrasts with the slight increase in net shorts from FIIs. The market’s resilience during this period indicates an overall positive trend despite these differing investment strategies.

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