Short positions of foreign portfolio investors (FPIs) are on the decline in the last couple of weeks, indicating a reversal of trend, said industry experts. This is also reflecting in the numbers, with FPIs net inflows at Rs 21, 286 crore in October – a first after three months of outflows.

Data shows that the percentage of FPI short positions as a percentage of total in India’s index futures has been hovering around 80% since October 15. The reversal in trend can be seen in the performance of benchmark indices, which have risen 5.1% in October – the highest in seven months.

Said Saurabh Mukherjea, founder and CIO of Marcellus Investment Managers, “The trend of FPI investments has started to change as there is excitement around GST cuts and Diwali was good for sectors like cars and consu

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