On April 25, 2025, Indian equity markets ended the week with a notable correction, as both the Nifty and Sensex witnessed a sharp decline amid aggressive options unwinding by foreign investors. Despite the fall, institutions showed buying interest in the cash market, signaling a tactical shift in positioning.

Cash Market Snapshot (₹ Crores)

• FII Cash Market: +2,952.33
• DII Cash Market: +3,539.85

Both FIIs and DIIs were net buyers in the cash segment, with combined inflows of over ₹6,400 crore. This supports the view of underlying strength, despite near-term volatility.

Derivatives Breakdown

FII Index Futures:

• Net Position: -1,672.34 crores
  • NIFTY: -78.31
  • BANKNIFTY: -1,276.99
  • FINNIFTY: -2.03
  • MIDCPNIFTY: -279.27
  • NIFTYNXT50: -35.74

Heavy unwinding in Bank Nifty futures weighed on broader sentiment. Midcap and smallcap indices also saw pressure.

FII Index Options:

• Net Position: -59,359.13 crores
  • NIFTY: -54,879.00
  • BANKNIFTY: -4,575.19

Massive exits from index options suggest expiry-related adjustments and profit booking. This was the key contributor to market weakness.

FII Stock Futures and Options:

• Stock Futures: +1,901.71 crores
• Stock Options: -1,745.41 crores

Despite weakness in index strategies, stock-specific long buildup indicates selective accumulation in fundamentally strong counters.

Market Summary

• NIFTY 50: 24,039.35 (-207.35 / -0.9%)
• SENSEX: 79,212.53 (-588.90 / -0.7%)
• India VIX: 17.16 (+5.6%)

The spike in India VIX highlights growing caution ahead of the monthly expiry and mixed global signals.

Conclusion

April 25 data reflects expiry-week volatility, with FIIs aggressively reducing index option exposure while remaining buyers in cash equities. Institutional accumulation in the cash market may cushion downside risk in coming sessions.

Traders should remain watchful of global cues, VIX trends, and rollover data as markets head into a fresh derivatives series.

Disclaimer: Market data is accurate as of April 25, 2025. This article is intended for informational purposes only and does not constitute investment advice.

Published by Paisonomics.com – Daily insights into market flows, data, and strategy.