On February 14, the volatility (volatility) in the market was seen increasing further. Rising tensions between Russia and Ukraine have raised concerns about the supply of crude. Due to which crude prices have reached the peak of more than 7 years. Apart from this, due to the rise in crude oil prices, inflation in the US is also seen rising rapidly, due to which there is an expectation that the US Fed can increase interest rates more quickly and rapidly to deal with inflation. Is.
India VIX, the benchmark index of volatility in the Indian equity market, saw a strong jump today and reached the level of 22.72, which is the highest level since January 27. Significantly, on January 27, India VIX was seen going up to 23.86 in intraday.
Around 02.28 pm, India VIX was seen at the level of 22.53 on the NSE, which was 20.58 percent higher than the closing of 18.68 on February 11. In general, when uncertainty in the equity market increases, volatility also increases, and when uncertainty decreases, volatility decreases and the market becomes stable. Due to which the bulls get an edge on the bears.
Mohit Ralhan of TIW Capital Group It says that the volatility in the market has increased due to the increasing tension between Russia and Ukraine and the uncertainty associated with it. The threat of a dangling sword of a major battle has engulfed the market, creating selling pressure. He also says that the impact of this threat will be only in the short term as the chances of a real and long war between the world’s two biggest nuclear superpowers are very less.
Gainers & Losers: Market fell for the second consecutive day, Nifty slipped below 16900, these stocks were the biggest movement
There is a possibility that this tension may subside in the next few weeks under geopolitical diplomacy, but during this period there will be heavy volatility in the market.
Other experts also say that amidst the current global concerns, there may be heavy volatility in the market in the coming days, but investors do not need to be afraid of these short-term troubles and they should take good stocks from a long perspective in this fall. should be included in your portfolio.
Mohit Nigam of Hem Security It says that the main reason for the recent decline of the market is the tension between Ukraine and Russia and with the ease of this crisis, we will see a strong bounce once again in the market. Mohit Nigam advises investors not to jump for short term gains in the market and choose good stocks with a long view in this period of downtrend.
VK Vijayakumar of Geojit Financial It also says that long-term investors should ignore such short-term fluctuations and include high quality financial and IT stocks in their portfolio in this fall.
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