Institutional flows on April 23, 2025, showcased a continuation of strong bullish undertones from FIIs. With over ₹3,300 crore pumped into the cash market and aggressive buying seen in stock futures, the overall sentiment remained positive despite a sharp unwind in index options, especially in banking.

Cash Market Flows (₹ in crores):

• FII Cash Market: +3,332.93
• DII Cash Market: -1,234.46

FIIs remained net buyers for the third consecutive session, while DIIs aggressively booked profits, continuing their trend from earlier in the week. The divergence reflects differing views on valuations and sector rotation.

Derivatives Summary

FII Index Futures:

• Net Position: +1,326.12 crores
• Nifty 50: +1,071.55
• Nifty Bank: +128.00
• Nifty Financial Services: +23.35
• Nifty Midcap Select: +91.27
• Nifty Next 50: +11.94

Fresh long positions were built across the board, led by Nifty 50, which saw over ₹1,000 crore in net additions. This suggests continued confidence in large caps amid expiry week positioning.

FII Index Options:

• Net Position: -12,012.27 crores
• Nifty 50: +1,980.08
• Nifty Bank: -12,339.12
• Nifty Financial Services: -2.81
• Nifty Midcap Select: -1,659.67
• Nifty Next 50: +9.26

A significant reduction was observed in Bank Nifty options, indicating heavy unwinding or hedging against recent gains. The positive stance in Nifty 50 options, however, shows selective bullish setups amid broader expiry volatility.

FII Stock Derivatives:

• Stock Futures: +4,316.91 crores
• Stock Options: -1,286.25 crores

FII positions in individual stocks were extremely bullish, with the highest net buying seen in the past few sessions. This highlights a tactical preference for stock-specific long bets in sectors like auto, capital goods, and telecom.

Market Snapshot

• NIFTY 50: Closed at 24,242.85
• SENSEX: Closed at 79,710.20
• India VIX: 15.81 (up 1.15%)

Despite options volatility, markets ended in green territory, supported by strong institutional cash inflows and aggressive stock futures positioning.

Conclusion

FII-DII activity on April 23 points to clear institutional bullishness in stocks while using index options for protection or profit booking. The sharp divergence between cash/futures inflows and options sell-off, especially in Bank Nifty, suggests expiry-linked adjustments rather than directional negativity.

The upward trend in stock-specific futures indicates confidence ahead of earnings season. Investors should watch rollovers and sector-wise F&O trends for cues.

Source: NSE India, April 23, 2025