After Six Days Continuous Falls Its Day 7 When Nifty Given Some Relief Bounce
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Friday, October 27, 2023
Thursday, October 26, 2023
Monday, October 23, 2023
The India VIX, which measures the expected volatility for the next 30 days in the Nifty50, experienced a sharp decline today, dropping by approximately 6 percent and falling below 10.
Traders are puzzled by this trend because markets globally are under pressure and Indian shares too have fallen of late. A rising VIX indicates that market participants are expecting volatility to increase in the days ahead whereas a low VIX means traders expect less volatility. In a world marked by escalating geopolitical tensions, rising bond yields, and increasing crude oil prices, risk-on sentiments have been dampened globally. Despite these elevated risks, the VIX, which is displaying levels below 10, suggests that the markets are not perceiving these risks as significant. A low VIX spells bad news for option writers. That is because the premium on options is lower if traders expect the market to be less volatile.Indian equity indices ended lower for the fourth consecutive session on October 23 with Nifty below 19,300.
At close, the Sensex was down 825.74 points or 1.26 percent at 64,571.88, and the Nifty was down 260.90 points or 1.34 percent at 19,281.80. About 497 shares advanced, 2893 shares declined, and 119 shares unchanged.
Biggest losers on the Nifty included LTIMindtree, Adani Enterprises, Hindalco Industries, Adani Ports and UPL, while gainers were M&M and Bajaj Finance.
All the sectoral indices ended in the red with Metal, Information Technology, Realty, Oil & Gas, Power, Capital Goods down 2-3 percent each, while Auto, Bank, FMCG, Pharma down between 1-2 percent.
BSE Midcap index shed 2.5 percent, while Smallcap Index declined 4 percent.
India has become a beacon in the global market as liquidity continues to pour into large-cap stocks. This exceptional resilience has set India apart, alongside Taiwan and Korea, as global fund managers increasingly allocate capital to select emerging markets, particularly through dedicated funds.
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