scorecardresearch
Follow Us:
Wednesday, May 18, 2022

Fear index gains 13.9%,indicates risk of sharp swings

On Monday,as the market rose to a new two-and-a-half year high,the fear index,as India VIX is popularly known,gained 13.9% to close at 18.14. This indicates the risk of sharp swings is minimal for the next 30 calendar days.

Written by Fe Bureau |
September 14, 2010 1:01:45 am

On Monday,as the market rose to a new two-and-a-half year high,the fear index,as India VIX is popularly known,gained 13.9% to close at 18.14. This indicates the risk of sharp swings is minimal for the next 30 calendar days. In the same period last year,the index was somewhere around 30 levels.

The index has largely fluctuated between the 20 and 30 levels for most of this year in some ways mirroring the rangebound movement of the benchmark indices. In March and April this year,the index went below the 20 mark but started surging again in May. It hit the year’s high of 34.5 on May 25 before retreating again in June and July. This year the index has closed below the 18 mark 31 times.

Market participants say that the fear factor has been largely absent for quite some time now because of the absence of negative news,either global or local. There has also been no directional movement,and it’s only in the past few weeks that the market has been able to sustain its rise.

India VIX had touched its peak of 85.13 on November 17,2008,soon after the collapse of the Lehman Brothers. India VIX,a volatility index based on the Nifty 50 index option prices and expressed in percentage terms,has been hovering at low levels for quite some time now.

Best of Express Premium

UPSC CSE Key – May 18, 2022: What you need to read todayPremium
Explained: The content and scope of Article 142, invoked by Supreme Court...Premium
From Indra’s flag and Krishna’s banner to saffron flag: From the di...Premium
Sanjiv Bajaj: ‘Like GST Council, need a platform to sort Centre-state iss...Premium

For all the latest Business News, download Indian Express App.

  • Newsguard
  • The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
  • Newsguard
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement