Investors Unwind Most Of Their Fresh Positions In Nifty 50 Futures As Markets Decline

Investors reversed over two-thirds of their freshly built up positions in Nifty 50 futures as the index declined over 4% from its peak, following a dip in global markets.

New built up positions in Nifty 50 index futures rose to Rs 42,387 crore, according to NDTV Profit's calculations, the highest since the expiry of monthly contracts on July 25.

This was an addition of Rs 8,689 crore worth of positions built over five sessions.

As the global markets decline on August 5 led by the Yen Carry Trade, and Indian markets extended their decline on the day that followed, investors unwound positions worth Rs 6,269 crore.

This equated to about a 72% decline in the positions based on the contracts' turnover.

Japanese yen rose against the dollar after Bank of Japan raised rates for the second time this year.

The hike in short-term interest rates by the Bank of Japan and weak data from the US saw the Yen appreciate sharply triggering unwinding of the yen carry trade.

The Japanese currency rose as much as 10% against the US dollar since its recent trough in July.

Japanese markets' benchmark Topix fell over 12% on Monday, the most among its largest peers, while Nifty 50's decline at 2.7% was the least among the comparable.