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News Topical, Digital Desk : Share Market News Today: The Indian stock market remains under constant pressure. The Nifty has fallen for the eighth consecutive day, marking the 21st time since 1990 that such a prolonged decline has occurred. Interestingly, after such a situation, the market has shown gains in the next 20 sessions in 65% of cases, delivering an average return of 3%. This time, selling by foreign investors, currency pressure, and global factors are making the market's movement even more challenging.
The Indian stock market is under constant pressure these days. The Nifty has slipped for the eighth consecutive day, marking only the 21st time since 1990 that such a trend has occurred. History shows that during such periods, the Nifty has recovered in approximately 65% of the cases over the next 20 sessions, delivering an average return of 3%.
What history says:
In the past 30 years, whenever the Nifty has been caught in such a prolonged downward cycle, the market has subsequently seen a rebound. However, this time the situation is slightly different, as short positions held by foreign investors (FIIs) are at record levels, and global uncertainties are dampening investor sentiment.
The game of FIIs and DIIs: On September 30, FIIs sold ₹2,327 crore in the cash market, while domestic institutional investors (DIIs) attempted to stabilize the market with strong purchases of ₹5,762 crore. Despite this, the Nifty remained under pressure. FII shorting in index futures has reached 94%, an all-time high. Net shorts stand at -1.76 lakh contracts.
Volatility and Liquidity: The Nifty VIX is at 11.06, a yearly low. This suggests less market fear, but also indicates investors are less vigilant. Margin funding reached ₹99,367 crore on September 29, indicating increased leverage trading.
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