Stock market: Election uncertainties blocks the Bulls
Stock market: Election uncertainties blocks the Bulls Posted by Nilesh waghela Mumbai: Domestic benchmark indices traded on a weak note on Wednesday, weighed down by losses in banks and FMCG counters. Uncertainity around election outcome and high volatility also kept investors on the sidelines. Sectorally, PSU banks and metals gained while realty bled. The pressure on the market now is due to the uncertainty regarding the election outcome. There is lots of speculation in the media regarding this and this has added to the uncertainty in the market. The India VIX spiking 72% from the April lows indicates that high volatility will persist for some more time. It is important to understand that VIX is based on Nifty index options prices. The spike in VIX is due to rising volume of options trades. Many investors are buying put options to protect their portfolio in case of an unexpected election outcome. For long-term investors the ongoing volatility and unc...