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VIX falls 54% from high, investors may be underestimating risks

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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

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