The market’s fear gauge ‘India VIX’–which indicates how much the Nifty 50 index is expected to change in the next 30 day– has had intriguing movements in the month of April’24 ahead of the high stakes general elections 2024. The volatility index typically experiences a sharp decline post-election once the outcome is determined. However, the VIX has been on a downtrend this month.
Market analysts reckon that the volatility index may rise just ahead of the election outcome, however, the increase may remain capped as the market has already priced-in the stability. A significant drop in the volatility index indicated participants are confident about the near-term market trajectory.
‘’Historically, India VIX tends to ascend preceding the election, fueled by anticipation of uncertainty and significant market shifts. However, it typically experiences a sharp decline post-election once the outcome is determined, said Santosh Meena, Head of Research, Swastika Investmart Ltd.
more to come
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Published: 30 Apr 2024, 09:51 PM IST