- India’s volatility index, VIX, reached a 52-week peak at 16.96 before concluding the session with a 13.56 per cent surge, settling at 16.6 on Monday’s trading session.
- The index has been exhibiting a characteristic oscillating pattern, plunging by over 20 per cent to dip below the 10 mark on April 23, and then surging by over 60 per cent in the following 8 trading sessions.
- Experts predict that the index is likely to rise further in the coming weeks amid ongoing general elections in the country.
India’s VIX index reaches a new 52-week peak, with experts predicting further increases amid ongoing general elections. This article delves into the details and potential implications of this development.
Unprecedented Surge in India’s VIX Index
India’s volatility index, VIX, has been capturing significant attention in the financial markets. The index reached a fresh 52-week peak at 16.96 before concluding the session with a 13.56 per cent surge, settling at 16.6 on Monday’s trading session. This marks the first time the index has reached such levels since December 2022, spanning a period of more than 17 months.
Oscillating Pattern and Predictions
The VIX index has been exhibiting a characteristic oscillating pattern. It plunged by over 20 per cent to dip below the 10 mark on April 23. Subsequently, within the following 8 trading sessions, the barometer surged by over 60 per cent, marked by relentless upward movements. Experts believe that this index is likely to go up higher in the coming weeks amid ongoing general elections in the country. According to Anand James, Chief Market Strategist, Geojit Financial Services, the volatility index VIX needs to sustain above 16 to elucidate higher fluctuations in option premiums.
Conclusion
The recent surge in India’s VIX index is noteworthy and warrants close monitoring. As the country navigates through its general elections, the volatility index is expected to remain high, potentially impacting the financial markets. Investors and traders should stay informed and prepared for the possible fluctuations in the coming weeks.
