Futures signal Monday pain for retail, HNIs

Retail and HNI investors have significant bullish positions open on Nifty and Bank Nifty derivatives

- Ram Sahgal

Retail and high-net-worth investors (HNI) could bear the brunt of a sharp correction on Monday if the markets were to open as signaled by Gift Nifty's steep drop at closing on Friday.

These market constituents, who have been absorbing foreign investor outflows from India, have significant bullish positions open on Nifty and Bank Nifty derivatives, besides being net buyers on the cash segment, shows exchange data.

"The retail/HNI category could suffer serious losses if the market plunges as much as that indicated by the Gift Nifty," said Rohit Srivastava, founder of IndiaCharts.

Retail and HNIs, designated "client" by NSE, are among the key participants on the markets. Others are domestic institutional investors (DIIs), foreign portfolio investors (FPIs) and proprietary traders.