In a special edition of Editor’s Take, Zee Business Managing Editor Anil Singhvi expressed concern over Foreign Institutional Investors (FIIs) long position increasing to almost 80 per cent. He terms, this as a negative factor to the market as it would lead ultimately or eventually to a decrease going forward. 

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At the start of the May series, FIIs long position stands at 78 per cent, this is the highest ever position foreign investors have made in any of the series since last six to seven months. The highest we witnessed was in December 2020 at 77 per cent, followed by January at 76 per cent. 

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Singhvi says, “Increase in the long position of FIIs is negative factor as whenever it reaches around 80 per cent, they don’t increase their long position, rather they start reducing it slowly and gradually.” 

Index’s net short of FIIs position is merely at 11 per cent, which is very low and net long stands at 38 per cent, which is too high, adds Singhvi. 

Singhvi doesn’t consider much Thursday’s buying of FIIs, as it was April series adjustments and it will reflect well, undoubtedly. FIIs have bought around Rs 800 cr in cash, similarly, there’s also buying in Stocks Futures and bit of selling in Index Futures. 

The US markets on Thursday spurted. Nasdaq and S&P 500 both created new records amid the quarter four results of social media giant Facebook and e-commerce giant Amazon Inc.  

Singhvi says, Asian markets have not at all reacted to US markets rise, as Hong Kong fell most, by as much as one and a half per cent, followed by Shanghai market by around one per cent. Moreover, SGX Nifty’s decline has added more fuel to the fire today.