India Rally Shows Signs of Short Covering, Lacks Fresh Buying

MarketsIndia Rally Shows Signs of Short Covering, Lacks Fresh BuyingFacebookXLinkedInEmailLinkGiftExpandThe National Stock Exchange in Mumbai.Photographer: Dhiraj Singh/BloombergFacebookXLinkedInEmailLinkGiftGift this articleContact us:Provide news feedback or report an errorConfidential tip?Send a tip to our reportersSite feedback:Take our SurveyNew WindowFacebookXLinkedInEmailLinkGiftBy Abhishek Vishnoi and Savio ShettyApril 9, 2026 at 8:01 AM UTCBookmarkSaveShort covering was a key driver of India’s stock-market rebound on Wednesday, according to positioning data, pointing to a lack of conviction behind the biggest rally in almost a year.The advanceBloomberg Terminal, aided by a US-Iran ceasefire, coincided with a sharp drop in futures positions. While similar patterns were seen across some Asian markets, the shift in India was more pronounced. Foreign investors reducedBloomberg Terminal their short positions in index futures by 32,035 contracts — the biggest one-day decline since Feb. 3.