India Volatility Index inches towards its all-time low

Written by fe Bureau | Mumbai | Updated: Aug 28 2014, 09:54am hrs
Equity market volatility represented by the India Volatility Index (VIX) on the National Stock Exchange (NSE) declined towards its all-time low on Wednesday.

As Indian benchmarks continued to hover near their all-time highs, India VIX fell to 13.06, inches away from its record low 13.04 recorded in October 2012.

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After touching a five-year high in May in the run-up to the 2014 general elections, the index has retreated strongly as Indian market rallied close to 20% in the post-election momentum.

Generally market volatility picks up ahead of any event that has uncertainty linked

to it while an upward

trending market, volatility tends to decline.