Volatility Index Drops 5% Ahead of Budget Presentation

Mumbai: In a rare sign, the Volatility Index (VIX) eased by 4.92 per cent on Wednesday, ahead of the Budget presentation on Friday. The VIX is the gauge which measure market’s expectation of volatility over the near term. Historically, VIX tends to surge ahead of any big developments like US-China trade talks, general election, exit poll due to uncertainty associated with the event. “We believe such low implied volatility is indeed a positive indication for near term,” said Sneha Seth Derivatives Analyst, Angel Broking. (IANS)

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