India’s Retail Investors Still Bullish Despite Plunge in Stocks
- Ratio of long-to-short positions is almost twice 10-year mean
- Stocks pain may accompany any reversion to long-run average
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If bets in the futures market are any guide, India’s retail investors remain optimistic about equities despite a 14% plunge in the nation’s stock market from a record high hit last year.
The ratio of outstanding long-to-short positions in single stock futures is at 6.74 times versus a 10-year mean of 3.74, data compiled by Bloomberg show.