FIIs boost index futures buying to ₹27,612 crore in week

Foreign institutional investors have stepped up their buying activity in Indian index futures, purchasing a net ₹27,612 crore over the past week. The aggressive accumulation reflects renewed confidence among global investors in domestic market prospects, even as they maintain a cautious hedging stance through short positions.

The long-short ratio in index futures currently stands at 0.45, indicating that for every long bet taken by FIIs, there are approximately two short positions. This ratio represents the highest point since July 2025, suggesting a gradual shift towards more bullish positioning despite lingering concerns about market volatility.

The improvement in FII sentiment comes at a time of fluctuating global conditions and domestic economic indicators. While the near-50% long-short ratio indicates that foreign investors remain selective in their approach, the week's net buying volume demonstrates their willingness to increase exposure to Indian equity index futures.

Market analysts view the increase in FII long positions as a signal of stabilizing sentiment in the institutional investment community. However, the continued significant short positioning suggests investors are maintaining hedges against potential downside risks. The trajectory of these positions may offer clues about foreign investor expectations for Indian market direction in coming weeks.