New Delhi, March 13 -- Foreign portfolio investors (FPIs) have nearly doubled their protection against a potential Indian market crash as the two-week-old Iran war fuels risk-off sentiment.

Cumulative net short positions held by FPIs in index futures such as Nifty and Bank Nifty rose to 226,327 contracts on Thursday, up from 124,368 on 27 February, a day before hostilities began, according to exchange data. That means FPIs have added 101,959 more short contracts, costing about Rs.19,974.9 crore in two weeks, according to NSE data.

The short position is close to the record high of 231,796 contracts seen on 24 February last year, when markets were roiled by proposed Trump tariffs, per data from analytical firm IndiaCharts.

"These are hed...