Long-time readers know that when this ratio is rising, it has typically been a sign that hedge fund managers are accumulating equities and buying put options on these broad-based ETFs to hedge their long positions.
The banks buying and selling the swaps may be doing so to hedge, speculate or earn a cut for acting on behalf of pension sponsors, hedge funds and other clients.
India will also sell from next month government bonds that will adjust returns based on the rate of inflation, a move aimed in part at weaning away small investors from buying gold as a hedge against high inflation.