New Delhi, May 1 (HS): The domestic stock market currently appears to be experiencing volatility. In April, both the Sensex and Nifty indices saw significant surges. However, at times, both indices also faced major declines. Following this volatility, over the past week, the stock market has been trading within a limited range, leading to uncertainty for small investors. On the other hand, Foreign Portfolio Investors (FPI) have made substantial investments in futures contracts in recent days. It is believed that the way foreign portfolio investors are starting to build bullish positions indicates that the stock market may be laying the groundwork for a major upside breakout in the coming days.

Foreign portfolio investors have purchased 97,938 futures contracts over the past two weeks. Based on these figures, it is anticipated that foreign investors are expecting a bullish movement in the Indian market in the coming days. According to depository data, foreign portfolio investors (FPI) have also been actively trading in the cash market, in addition to derivatives. Over the last 10 consecutive trading days, FPIs have taken on the role of net buyers, investing ₹37,326 crores. This situation has arisen amidst continuous volatility in the international markets.

Prashant Dhami, Vice President of Dhami Securities, states that while foreign portfolio investors have indeed increased their investment in futures contracts due to the market rally in April, small investors should currently focus on monitoring market trends rather than making large investments. Dhami mentions that due to fluctuations in fourth-quarter results, market movements may remain volatile. Additionally, uncertainties in the global economy and fears of a tariff war could lead to negative market sentiment at any time. In such circumstances, small investors should devise their investment plans with caution; otherwise, they may face significant losses.

Hindusthan Samachar / Jun Sarkar