More pain in store for Indian equities, based on derivatives data, say brokerages

Bengaluru: The slide in Indian equities in October, which was the steepest since March 2020, is likely to extend into November as investors continue to lean towards sell on rally, brokerages analysis of the October equity derivatives series showed...

The OI declined to 4.068 trillion rupees ($48.38 billion) at the start of the November series on Nov. 1, from 4.802 trillion rupees at the start of the October series on Sept. 27, according to Nuvama Alternative and Quantitative Research...

The indexs roughly 8% slide from an all-time high on Sept. 27 through the end of October was mainly due to a record-high $11.2 billion in equity sales by foreign investors over the month...

Nuvamas data further shows that foreign investors flipped to short positions worth $1.5 billion, on a net basis, in Nifty futures at the end of October expiry, from a net long position of $3.13 billion at the end of the previous expiry...

Meanwhile, client category, or high-net-worth individuals and retail investors went in the opposite direction in that period, flipping to net longs of $2.08 billion from net shorts of $2.21 billion, the data shows.. Client category covered their shorts in October series, while foreign investors unwound their index longs and added significant shorts in October series, said Abhilash Pagaria, head of Nuvama Alternative and Quantitative Research..

You might be interested in