Bloomberg(You can now subscribe to our(You can now subscribe to our ETMarkets WhatsApp channelA gauge of volatility in Indian stocks has risen in its longest streak ever, underscoring growing uncertainty over the outcome of the nation’s general elections as polling gets underway.The India NSE Volatility Index — which uses equity option prices to measure expected market swings over the next 30 days — is heading for its 11th consecutive session of gains.
analysts Anjali Verma and Navaneeth Vijayan wrote in a note.
“The turnout so far is a tad lower and while this could affect the outcome for a few constituencies, it is unlikely to majorly dent the widely expected outcome of BJP returning to power.”The South Asian nation has voted on more than half of the 543 seats up for grabs in the lower house of the parliament in a seven phase polling that will conclude on June 1.
Votes will be counted on June 4.An increase in volatility during elections is not unusual.
In 2019, the index climbed over 20% in the month leading to the counting of votes
Bloomberg
(You can now subscribe to our
(You can now subscribe to our ETMarkets WhatsApp channel
A gauge of volatility in Indian stocks has risen in its longest streak ever, underscoring growing uncertainty over the outcome of the nation’s general elections as polling gets underway.The India NSE Volatility Index — which uses equity option prices to measure expected market swings over the next 30 days — is heading for its 11th consecutive session of gains. The so-called fear gauge has jumped as much as 88% from a low in April amid speculation that Prime Minister Narendra Modi’s party may win fewer seats than initially expected.While the incumbent party is still widely expected to win a third term, a smaller majority may affect the government’s ability to carry out policy reforms such as those aimed at revamping India’s infrastructure and boosting its presence in global supply chains as a potential alternative to China.“We reckon that 400+ seats seem unlikely” for the Bharatiya Janata Party-led alliance, Phillipcapital India Pvt. analysts Anjali Verma and Navaneeth Vijayan wrote in a note. “The turnout so far is a tad lower and while this could affect the outcome for a few constituencies, it is unlikely to majorly dent the widely expected outcome of BJP returning to power.”The South Asian nation has voted on more than half of the 543 seats up for grabs in the lower house of the parliament in a seven phase polling that will conclude on June 1. Votes will be counted on June 4.An increase in volatility during elections is not unusual. In 2019, the index climbed over 20% in the month leading to the counting of votes
