The broker-funded client book, popularly known as the margin trading facility (MTF) book, witnessed its biggest single-day net outflow of almost ₹3,000 crore on Friday, data released late Monday by online portal mtf.trading, which several brokers refer to, shows.
The liquidation of leveraged positions, the highest since the portal began compiling data in January 2017, was triggered by rising oil prices amid an escalation in West Asia war. It contributed to sharp intraday volatility on Friday, when the Nifty swung 415 points (1.85%) between a low of 22,372 and a high of 22,787 before settling 0.4% lower at 22,600, according to Kruti Shah, quant analyst at Equirus.
The combined NSE and BSE margin trading facility book declined by almost ₹3,000 crore on a net basis to ₹1.51 trillion on Friday from ₹1.54 trillion a day earlier, according to the portal.
The funded stocks which saw liquidation or square off by brokers included PC Jewellers ( ₹78 crore), Infosys ( ₹17 crore), Reliance Industries ( ₹34 crore), HDFC Bank ( ₹42 crore) and BSE ( ₹46 crore).
"We had provisional buying by both FPI (foreign portfolio investors) and DII (domestic institutional investors), proving that the MTF book drawdown was responsible for the intraday volatility," said SK Joshi, consultant at Khambatta Securities.