Volatility in Indian stock markets cooled-off drastically in April, indicating that investors may be underestimating risks that lie ahead.
Indian markets are seeing significant low volatility at a time when global recession looms large, corporate earnings look fragile and the domestic economy rendered vulnerable by the nationwide lockdown due to covid-19.
The India VIX index, the so-called fear index, fell 54.85% in a violent trading month for equities, from its 2020 highs of 86.64 points, touched on 24 March.
However, at 39 points, the fear gauge is still 283% higher than this year’s low of 10.17 touched on 20 February. An analyst said that as markets were oversold in March, there was a realisation among traders that corrections were an