Good news for Indian stock markets as some signs of cooling off are being seen in volatility index or India VIX. It  has been observed lately that VIX is down by about 50 per cent from its recent highs in March. Moreover, there has been some stability in the market. So, what does this mean for the Indian markets? Zee Business' Ashish Chaturvedi has a detailed report.

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The markets have witnessed some stability in recent times after a very volatile March month, Chaturvedi says. India VIX has come down by almost 55 per cent from its recent peak. India VIX is the barometer of volatility for the Indian markets. On 24 March VIX touched a high of 86 per cent. That level has come down now considerably, he says.

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Another interesting observation that comes out from this is that, at the index level, the average daily range in Nifty and Bank Nifty is coming down gradually. Though, selling by FII has continued, the quantum has come down. One of the indicators to measure this is ATR or Average to Range which was 530 for Nifty in the month of March, while it was 1650 for Bank Nifty.

The sell-off in March was around Rs 65800 cr. The average daily sell-off was around Rs 3000 cr. Though the trend has continued in April, it has been less severe in comparison to what it was in March. On 22 April, FIIs' sell-off was worth Rs 1326 cr, which was Rs 2095 cr on 21 April and Rs 265 cr on 20 April.

Meanwhile, on 17 April there was a buying activity worth Rs 1360 cr.

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This is an indication that the markets are regaining their stability.