Despite escalating tensions betweenIndia and Pakistan foreign portfolio investors have been active buyers of Indian equities since April 15th this comes amid concerns over a potential slowdown in the US economy which has impacted the US dollar stocks and bonds
vk Vijayakumar of Geojet Investments Limited said that the major factor contributing to the resilience in the market is the sustained buying by FIS which has amounted to 32,465 cr rupes in the last 8 days he said that FIS have become a sustained buyer in a dramatic reversal of its sustained selling strategy this in turn is due to the relative underperformance of US stocks US bonds and the dollar in an environment of a weakening US economy and a depreciating dollar FIS may continue to buy providing support to the market despite the escalation of tensions between India and Pakistan following the
Pahelgam terror attack
FBI’s do not expect the border issues to significantly impact the stock markets their positions in the derivative market suggest a calm outlook with many FBI investors maintaining their positions and expecting good developments from potential US India trade deals even data from last Friday indicated that FBI have closed out a significant number of beerish option contracts which would have protected them in the event of a sharp market correction despite rising public concern over the Pahalgam massacre
FPS continued to buy in cash segment on Friday FPS reduced their cumulative net index put option positions to just 6,300 contracts down from 1 lak 77 contract the previous day they also sold many more index puts than they bought lowering the net long figure
rajesh Palvia of Excurity said that this shows FPS don’t expect the tensions with Pakistan to snowball into something worse at least as of now niml Jen founder of IFL Group said that while markets are currently volatile due to the geopolitical tensions historical patterns indicate that Indian equity markets tend to be resilient during conflicts he added that during the Cargill war Nifty rose 37% from May to July 1999 and during the Balacord air strikes in 2019 the market remained stable and rose 7% by March end in the second half of the April through Thursday FPS had net purchased secondary shares worth 27,600 cr rupees as per the NSDL data this has brought down the selling intensity from 34,000 cr rupes in the first half of April to just 6,600 cr rupees in the month through 24th of April apart from the unwinding of puts provisional data from BSC indicates that FBI’s net purchase shares worth 2900 cr rupees on Friday excurities Palvia attributed the recent FBI cash mine to hopes of a trade deal between India and the US rather than being concerned about a deadlier fallout from the Pahel massacre.