India VIX falls 27% as Sensex rises 1,000 pts in early deals
Sensex climbed 1046 pts to 79,639 and Nifty rose 314 points to 23,992 in early trade today. Market cap of BSE-listed firms rose to Rs 445.85 lakh crore.
- Aug 7, 2024,
- Updated Aug 7, 2024 12:09 PM IST
The Indian equity market was trading higher in early deals on Wednesday in line with its global peers after three sessions of correction. Investors had lost Rs 22 lakh crore in the last three sessions. The rally in Sensex and Nifty sent India VIX, a gauge for measuring volatility in the stock market, lower by 27% to 13.72. The Indian stock market's fear gauge index fell 8% to 18.74 on Tuesday.
Sensex climbed 1046 pts to 79,639 and Nifty rose 314 points to 23,992 in early trade today. Market cap of BSE-listed firms rose to Rs 445.85 lakh crore. However, investor wealth is still down by nearly Rs 15.77 lakh crore before the three-day correction started on August 2. On August 1, market cap of BSE-listed firms stood at Rs 461.62 lakh crore.
Anand James, Chief Market Strategist, Geojit Financial Services said, "The sharp decline in India VIX is largely in response to the recovery in equities seen early in the day following the global rout yesterday. But the drop in VIX is not seen sustaining and the pull back above 18 reflects that Indian market remains sensitive and vulnerable as global events unravel with Nifty just having turned from a 10 period long stretch of month on month peaks."
Weak US jobs data last week indicated the economy could be headed for a recession. This caused a rout on the Wall Street, sending key indices NASDAQ Composite, S&P 500 and Dow Jones Industrial Average in the red for three straight sessions until Monday.
On August 5, Indian VIX surged 60% to 22.90 as Indian market crashed amid a rout in the global stock markets. The index, which closed at 14.32 on Friday surged to 22.90 level in late morning deals on Monday. The rally in the fear gauge index came after Sensex crashed 2,037 pts to 78,944 and Nifty fell 661 pts to 24,056. Market cap of BSE-listed firms fell to Rs 440.13 lakh crore, indicating a loss of Rs 17.03 lakh crore of investor wealth in late morning deals on Monday.
The Indian equity market was trading higher in early deals on Wednesday in line with its global peers after three sessions of correction. Investors had lost Rs 22 lakh crore in the last three sessions. The rally in Sensex and Nifty sent India VIX, a gauge for measuring volatility in the stock market, lower by 27% to 13.72. The Indian stock market's fear gauge index fell 8% to 18.74 on Tuesday.
Sensex climbed 1046 pts to 79,639 and Nifty rose 314 points to 23,992 in early trade today. Market cap of BSE-listed firms rose to Rs 445.85 lakh crore. However, investor wealth is still down by nearly Rs 15.77 lakh crore before the three-day correction started on August 2. On August 1, market cap of BSE-listed firms stood at Rs 461.62 lakh crore.
Anand James, Chief Market Strategist, Geojit Financial Services said, "The sharp decline in India VIX is largely in response to the recovery in equities seen early in the day following the global rout yesterday. But the drop in VIX is not seen sustaining and the pull back above 18 reflects that Indian market remains sensitive and vulnerable as global events unravel with Nifty just having turned from a 10 period long stretch of month on month peaks."
Weak US jobs data last week indicated the economy could be headed for a recession. This caused a rout on the Wall Street, sending key indices NASDAQ Composite, S&P 500 and Dow Jones Industrial Average in the red for three straight sessions until Monday.
On August 5, Indian VIX surged 60% to 22.90 as Indian market crashed amid a rout in the global stock markets. The index, which closed at 14.32 on Friday surged to 22.90 level in late morning deals on Monday. The rally in the fear gauge index came after Sensex crashed 2,037 pts to 78,944 and Nifty fell 661 pts to 24,056. Market cap of BSE-listed firms fell to Rs 440.13 lakh crore, indicating a loss of Rs 17.03 lakh crore of investor wealth in late morning deals on Monday.