Wednesday, 24 January 2018

Market volatility peaks despite strong rally



Investors are getting more and more nervous about the equities rally as markets ascend to new highs. The India VIX index, the so-called fear index, rose 14%, to a 14-month high during the day on Wednesday.
The volatility index frequently has an inverse interaction with rising markets. The current rise in the fear index recommend that bankers are losing assurance in the rally or that a correction is probable. Indeed, last year, the VIX had hit a record low suggesting that bankers were complacent about risks.

According to Ajay Bodke,chief executive and chief portfolio manager, Prabhudas Lilladher Pvt. Ltd expansion in volatility underlines nervousness in the markets.

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