100-Word Take | India Vix's fall is the equivalent of a sigh of relief

Mutual funds (MFs) and foreign instiutional investors (FIIs) have common holdings in several stocks. Here are some stocks where both MFs and FIIs steadily increased their holdings in 2018.

Shishir Asthana

As the dark clouds hovering over the Indian market are clearing up, the fear gripping it, as measured by the volatility index, has dissipated. India Vix is now at a 3-month low of 14.4 percent.

Market participants believe the results of the five recently-concluded state elections suggest that the government will start spending more. A new RBI chief has also been appointed, and they believe he will loosen the purse strings to some extent. Crude oil prices continue to be low despite a production cut announced by OPEC+ nations. The rupee has recovered and so have bond prices. The fall in the Vix is surely the equivalent of a sigh of relief.

It's true that global storm clouds are gathering, but the India Vix shows the Indian market has not paid much attention to them as yet.