Bloomberg / Updated: May 16, 2024, 02:17 IST
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Foreign investors are pessimistic on Indian stocks due to uncertainty around BJP’s election performance. Net short positions in index futures contracts have surged, reflecting bearish sentiment in the derivatives market. Overseas investors have withdrawn $4 billion from local stocks since April. The gap in short positions is the widest since 2012, according to data compiled by Bloomberg.
Foreign investors
are the most pessimistic in over a decade on
Indian stocks
amid speculation over BJP winning fewer seats in the ongoing national elections than previously estimated.
Net short positions
– measured as the difference between the number of
index futures contracts
on which global funds are long to those on which they hold a short position – surged to 213,224 contracts, data compiled by Bloomberg showed.
The gap is the widest since data going back to 2012.
The
bearish positions
in the derivatives market have come at a time when overseas investors have pulled out about $4 billion from local stocks since early April.
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