FPIs likely to press sell button this week

Foreign investors appear to have readied themselves for a negative reaction over this week, after remaining largely absent during the special budget session on Saturday.

- Ram Sahgal

The Union budget's tilt towards consumption over capex, anticipation of an expanding global trade war, and uncertainty over the next monetary policy outcome on 7 February could have influenced their decisions, according to analysts.

In a rare move ahead of the budget, FPIs (foreign portfolio investors) heightened their bearishness by net selling index (Nifty and Bank Nifty) call options, in addition to cash market sales and shorting index futures.