Why are FIIs heavily selling index options but buying in cash & futures?
I came across this FII/DII activity data from March 20, 2025, and found it quite interesting.
FIIs sold ₹66.5K Cr in Index Options and ₹67.5K Cr in Nifty 50 🤯
Meanwhile, they bought ₹3.2K Cr in the cash market and ₹2.9K Cr in Index Futures
India VIX is down 5.3%, meaning volatility is dropping.
Why would FIIs dump index exposure but still buy in the cash market and futures? Are they hedging, expecting a range-bound market, or something else? Would love to hear your insights!
I came across this FII/DII activity data from March 20, 2025, and found it quite interesting.
FIIs sold ₹66.5K Cr in Index Options and ₹67.5K Cr in Nifty 50 🤯
Meanwhile, they bought ₹3.2K Cr in the cash market and ₹2.9K Cr in Index Futures
India VIX is down 5.3%, meaning volatility is dropping.
Why would FIIs dump index exposure but still buy in the cash market and futures? Are they hedging, expecting a range-bound market, or something else? Would love to hear your insights!