The positioning in equity derivatives suggests that the run up in Indian stocks is set to continue in the New Year as the roll-out of vaccines for COVID19 will improve the macroeconomic outlook, at a time when abundant global liquidity and additional fiscal stimulus by governments are expected to keep risk appetite high.
Foreign institutional investors and retail traders rolled over net long positions to the January futures of the Nifty 50 this week, as indicated by a rise in the cost of carrying forward positions, analysts said. In index futures, long positions of foreign institutional investors outnumbered their short positions by around 69,522 contracts, according to brokerage firm Sharekhan.
The fact that foreign institutional investors remain bullish on Indian equities can also be ascertained from their purchases in the cash market. After a near USD10-bln record-breaking buying spree in November, foreign investors bought Indian shares worth over USD7 bln in December.
Market Watch: Indian Rupee down 23-ps to 73.79 against US dollar
