Participatory note (P-note) issuances with derivatives as the underlying product have risen sharply this year, from Rs 39,647 crore in January to Rs 63,527 crore in end-October. They now amount to around 6.2% of the total stock holdings of foreign institutional investors (FIIs), up from 3.7% in January.
Considering that markets have been weak this year, it’s quite likely that most of these trades involved taking short positions on Indian stocks and indices.
Also See | Chart of the day (PDF)
PDF by Ahmed Raza Khan/Mint