Foreign portfolio investors (FPIs) have significantly reduced their bearish sentiment in Indian markets with the Lok Sabha election results just around the corner. On Thursday, FPIs cut their net short positions on index futures contracts by a substantial amount, leading to a surge in the markets. This short-covering, along with their purchase of shares, helped push the markets to a fresh high.
Market experts like Deepak Shenoy and U.R. Bhat believe that the market momentum will continue, especially after the exit poll results start rolling in. While markets closed flat on Friday, experts like Gautam Duggad and Rohit Srivastava are optimistic that the momentum will continue as long as there are no negative surprises on 4 June.
Retail and HNI investors are holding bullish positions in contrast to FPIs, indicating a mixed sentiment in the market. Despite FPIs selling shares worth a significant amount in the fiscal year, they have also been net buyers of shares, showing a complex market scenario.
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