| The average daily contracts size (buy and sell) fell by whopping 60 per cent in December and the notional value of contracts plunged by 55 per cent over the average of the last month (November). |
| As a result, the outstanding open interest of FIIs hovered around Rs 3,300-3,400 crore in the current month. The markets attributes the fall to the increased daily margins on derivative contracts. |
| The exposure margins in almost all derivatives scrips had been hiked between one and three per cent on November 10 which continued in the current month. |
| The illiquidity in the two and three months forward contracts is said to be driving away FIIs from the derivatives markets. |
| During the 14 trading days of the current month, FII contracts (buy and sell) averaged at 5,695 compared with a daily average of 13,898 in November and 18,991 in September. |
| The notional value of contracts, too, fell sharply to an average of Rs 220 crore from Rs 497 crore in November and Rs 592 crore in September. |
| The trading data in the derivatives markets show that FII exposure in stock futures has been on the wane compared with their exposure to index futures. |
| The data indicate that they were totally absent from index and stock options in the current month. FII buying in index futures dropped to a daily average of 1,217 contracts in December from 1,824 in November and 2,964 in September. |
| The value of contracts declined to Rs 41 crore in December from Rs 57 crore in November and Rs 80 crore in September. |
| Their selling in index futures dropped to 1,068 contracts valued at Rs 36 crore in December from 1,763 contracts valued at Rs 55 crore in November. FIIs sold 2,999 index futures in September valued at Rs 81 crore. |
| FIIs daily buying in stock futures averaged at 1,901 contracts (Rs 78 crore) in December from 4,653 contracts (Rs 176 crore) in November and 6,080 contracts (Rs 202 crore) in September. |
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