FPIs pare bank Nifty shorts ahead of RBI policy

What happened: Foreign investors are scaling back bearish bets on banking stocks ahead of the RBI policy decision on Wednesday, with short covering in Bank Nifty futures. Key numbers: RBI expected to raise repo rate 25 basis points to 5.50%. Why it matters: Markets expect continued short covering to support a short-term rally in banks after the policy outcome, provided there are no adverse surprises from the MPC or a fresh escalation in Middle East tensions. Analysts cited improving credit prospects, comfortable liquidity, and oversold conditions.

FPIs reduced bearish bank Nifty positions before RBI policy decision.

FPIs reduced bearish bank Nifty positions before RBI policy decision. — impact context not separately stored; see What changed.