Election Results 2024: India VIX jumps 27% as INDIA alliance exceeds expectations
India VIX index had cooled off in the previous session after exit polls said the PM Narendra Modi-led NDA was set to form government for the third time. The index slipped 14.9% on June 3.
- Jun 4, 2024,
- Updated Jun 4, 2024 4:33 PM IST
The Opposition INDIA alliance’s remarkable performance in the election results 2024 set the Indian VIX on fire today. The volatility index zoomed 27.70% to 26.74 on Tuesday, signaling heightened volatility in the market. The index had cooled off in the previous session after exit polls said the PM Narendra Modi-led NDA was set to form government for the third time. The index slipped 14.9% on June 3. The rise in VIX shows traders sees risk to the market in the near term.
With the election results not aligned with the exit polls predictions, the market crashed on June 4.
Trivesh D, COO of TRADEJINI said, "An increase in VIX indicates heightened fear among market participants regarding election results, which has resulted in a rise in the fear gauge index. The VIX is acting similar to the period right before the results of the Lok Sabha election were announced in 2019. During the 2014 Lok Sabha elections, the India VIX reached a historical high of 39.30, and in the 2019 Lok Sabha elections, it almost reached the 30 mark."
Sensex plunged 4,389 pts to 72,079 and Nifty ended 1379 pts lower at 21,884 on Tuesday. Investor wealth plunged by Rs 30.5 lakh crore to Rs 395.42 lakh crore in the current session against Rs 425.92 lakh crore in the previous session.
On Friday (May 31), India VIX surged 83% in a month to 24.6.
Ajit Mishra – SVP, Research, Religare Broking said, “Markets plunged sharply today, losing nearly 6% and erasing the gains of the past four months. After an initial drop, the Nifty continued to decline, almost retesting its major support zone at the long-term moving average of 200 DEMA around 21,280. However, some recovery in the latter half of the session pared losses, and the index finally settled at 21,844.50. All key sectors, except FMCG, experienced significant losses, with PSUs, energy, and metals being the hardest hit. The broader indices also suffered, each losing around 8%.”
The Opposition INDIA alliance’s remarkable performance in the election results 2024 set the Indian VIX on fire today. The volatility index zoomed 27.70% to 26.74 on Tuesday, signaling heightened volatility in the market. The index had cooled off in the previous session after exit polls said the PM Narendra Modi-led NDA was set to form government for the third time. The index slipped 14.9% on June 3. The rise in VIX shows traders sees risk to the market in the near term.
With the election results not aligned with the exit polls predictions, the market crashed on June 4.
Trivesh D, COO of TRADEJINI said, "An increase in VIX indicates heightened fear among market participants regarding election results, which has resulted in a rise in the fear gauge index. The VIX is acting similar to the period right before the results of the Lok Sabha election were announced in 2019. During the 2014 Lok Sabha elections, the India VIX reached a historical high of 39.30, and in the 2019 Lok Sabha elections, it almost reached the 30 mark."
Sensex plunged 4,389 pts to 72,079 and Nifty ended 1379 pts lower at 21,884 on Tuesday. Investor wealth plunged by Rs 30.5 lakh crore to Rs 395.42 lakh crore in the current session against Rs 425.92 lakh crore in the previous session.
On Friday (May 31), India VIX surged 83% in a month to 24.6.
Ajit Mishra – SVP, Research, Religare Broking said, “Markets plunged sharply today, losing nearly 6% and erasing the gains of the past four months. After an initial drop, the Nifty continued to decline, almost retesting its major support zone at the long-term moving average of 200 DEMA around 21,280. However, some recovery in the latter half of the session pared losses, and the index finally settled at 21,844.50. All key sectors, except FMCG, experienced significant losses, with PSUs, energy, and metals being the hardest hit. The broader indices also suffered, each losing around 8%.”