FIIs Activity
Foreign Institutional Investors have sold over ₹3,300 crore in the cash segment. In the F&O segment, they have significantly increased their net short positions in index futures. This indicates a lack of confidence in Indian equities in the near term. Two key reasons are driving this sentiment:
1) Weak corporate earnings
2) No progress on the US-India trade deal
Global Market Update
On Friday, former US President Donald Trump announced a fresh set of tariffs on multiple countries. This triggered a correction in US equities. The S&P 500’s Volatility Index (VIX) has risen above 20, signaling likely near-term volatility in global markets.
Sentiment Check
Despite the corrections, there’s no sign of panic yet. Global sentiment remains broadly neutral.
Domestic Policy Update – GST Rationalization
News reports suggest that the Group of Ministers (GoM) may soon submit their recommendations on GST rate rationalization. If the GST Council approves the proposals, it could be a significant structural boost to the economy and equity markets.
Our View
Adopt a cautious approach. Avoid aggressive trading. Focus on fundamentally strong stocks with strict stop-losses in place.