dkishore
25-06-2008, 06:42 AM
Yet another conspiracy theory was heard doing the rounds on Tuesday. This one was about foreign institutional investors and their activity in the futures segment. That FIIs have been going short on the Nifty due to various global and domestic reasons is well known.
However, a large section of the market players added a new twist to the whole tale. According to the market buzz, many US-based FIIs have been going short on Nifty futures in a ‘planned attempt’ to put pressure on the Indian government to sign the nuclear deal.
Market ‘experts’ were heard saying that the market would rebound the day the government ‘bows’ to US ‘pressure’ and signs the deal. The June series Nifty Future is trading at a discount of nearly 20 points to the spot. Similarly, the July and August series is trading at a discount of 50.85 points and 51.80 points, respectively.
However, a large section of the market players added a new twist to the whole tale. According to the market buzz, many US-based FIIs have been going short on Nifty futures in a ‘planned attempt’ to put pressure on the Indian government to sign the nuclear deal.
Market ‘experts’ were heard saying that the market would rebound the day the government ‘bows’ to US ‘pressure’ and signs the deal. The June series Nifty Future is trading at a discount of nearly 20 points to the spot. Similarly, the July and August series is trading at a discount of 50.85 points and 51.80 points, respectively.