India VIX heads towards biggest slump in over 4-1/2 yrs

Written by Reuters | Updated: May 13 2014, 15:21pm hrs
NSE's volatility index, or India VIX, fell as much as 23.88 percent, heading for its biggest single-day fall since August 26, 2009 after exit poll results showed Bharatiya Janata Party and its allies headed for a majority in elections.

India VIX had surged in the lead-up to the exit polls as investors braced for a potential negative surprise.

However, projections for a majority reinforce market expectations. The benchmark BSE index rose as much as 1.57 percent to a record high of 23,921.91 while the broader NSE index surged 1.45 percent to record high of 7116.20.