New Delhi, April 25 -- Retail investors and high-net-worth individuals (HNIs) turned net bearish on index futures on Friday for the first time in over six months, just days after Pakistan-backed terrorists killed 26 Indians and a foreign national in Kashmir. Yet, market participants say the move doesn't signal a broader sell-off-at least not yet.

These investors-who've played a key role in cushioning foreign portfolio investor (FPI) outflows over the past year-held cumulative net short positions of 20,871 contracts across Nifty and Nifty Bank futures. The last time they were net short was on 3 October, during a sharp global correction triggered by surging US bond yields and a rising dollar.

They held a record net long index futures posi...