New Delhi, Jan. 21 -- Foreign portfolio investors (FPIs), who have been selling Indian shares since October 2024, have also doubled down on their bearish derivatives bets to make a quick gain from these positions, which generate profits when markets fall.

In addition to shorting Nifty and Bank Nifty futures, FPIs have begun selling Nifty and Bank Nifty call options in the past six months to gain from a fall in the indices, exchange data shows.

A sale of a call involves the seller earning a premium from a buyer. If the market falls or stays flat, the seller gains; if it rises, the seller loses unless she owns the underlying stocks of Nifty or Bank Nifty.

Futures facilitate a purchase or sale of an underlying stock at a fixed price on a ...