The stock market turned extremely weak during the week. The Nifty tumbled 4.09 per cent, while the Nifty future, which was commanding a premium last week over the spot close, dipped into the discount. According to market sources, a couple of FIIs have turned extremely bearish on the Indian markets and are offloading their positions. They are also taking a directional call on the Indian market by shorting index futures and stock futures of index-heavyweights in the derivative segment.
According to brokers, big names such as Goldman Sachs are offloading their holdings, as they are wary of Indian market going forward, since the depreciating rupee will erode their returns further. Crude prices are another source of worry due to the pressure they exert on the Indian economy.
During the last three days, FIIs were net sellers to the tune of Rs 2,205 crore in index futures and about Rs 450 crore on stock futures. Part of the selling could be accounted by portfolio hedges, while the rest could be naked short positions. In the cash segment also they remained net sellers to the tune of Rs 1,481 crore in the last three days.
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