Foreign institutional investors returned to Indian equity derivatives in May with renewed intent. After a subdued presence through late 2024 and early 2025, FIIs re-engaged with Nifty futures in both scale and sequence. A closer reading of the data from May 1-25 suggests that early trades — particularly in the first hour of the session — may carry more signal than is typically acknowledged.This observation, while limited in duration, aligns with long-established institutional behaviour. Large global investors, including central banks, sovereign funds, and long-only portfolios, often front-load orders to minimise market impact and exploit cleaner liquidity early in the day. In India’s case, where Nifty futures are highly liquid and tightly linked to spot moves, this approach becomes more visible on the tape.
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