Institutional activity on April 22, 2025, presented a mixed but intriguing picture. While Foreign Institutional Investors (FIIs) continued to pump money into the Indian cash markets, their positions in index futures and options reflected hedging and profit booking strategies. DIIs, on the other hand, remained net sellers in the cash market.
Cash Market Flows (₹ in crores):
- FII Cash Market: +1,290.43
- DII Cash Market: -885.63
The strong net buying by FIIs suggests continued confidence in Indian equities, particularly in the large-cap segment. This marks the second consecutive session of positive flows after a strong showing on April 21. DIIs, however, booked profits as valuations continued to stretch in some sectors.
Derivatives Summary
FII Index Futures:
- Net Position: -235.06 crores
- Nifty 50: -513.54
- Nifty Bank: +276.58
- Nifty Financial Services: +10.32
- Nifty Midcap Select: -8.85
- Nifty Next 50: +0.43
Despite a negative headline number in index futures, FIIs added positions in Bank Nifty and Financial Services, indicating a rotation from frontline indices to sectoral opportunities. The net sell figure was largely driven by Nifty 50 trimming.
FII Index Options:
- Net Position: -3,995.91 crores
- Nifty 50: -8,269.36
- Nifty Bank: +4,794.43
- Nifty Financial Services: +107.43
- Nifty Midcap Select: -613.61
- Nifty Next 50: -14.81
The sharp cuts in Nifty 50 options once again signal volatility hedging or profit-taking. However, aggressive buying in Nifty Bank options shows a bullish view in banking stocks amid favorable credit growth and policy tailwinds.
FII Stock Derivatives:
- Stock Futures: +240.33 crores
- Stock Options: -702.26 crores
While FIIs added moderately to stock futures, the selling in stock options could be interpreted as premium booking or adjustment ahead of expiry.
Market Snapshot
- NIFTY 50: Closed at 24,186.70
- SENSEX: Closed at 79,565.10
- India VIX: 15.63 (up 0.71%)
The indices posted modest gains despite derivative market caution, hinting that institutional cash flow strength continues to support underlying sentiment.
Conclusion
FII-DII activity on April 22 reflects a typical expiry week strategy—continued cash buying from FIIs, defensive trimming in index futures, and hedging in options. The bullish stance on Bank Nifty and Financial Services highlights sectoral resilience, while net DII selling suggests some short-term caution.
Market participants should keep an eye on rollover trends and policy commentary as the April series comes to a close.
Source: NSE India, April 22, 2025
