Facebook Pixel Code

Quick view: Market volatility to rise as elections near: BofA ML

MSCI removes Lupin, Power Grid & Zee Ent

Market volatility to rise as elections near: BofA ML

Bank of America Merrill Lynch (BofA ML) has said volatility in Indian markets is likely to rise sharply as general elections near. According to a report by BofA ML, capital markets are ?usually jittery prior to the declaration of election results as it is uncertain about the outcome?. ?We would expect VIX to rise as we near May (general election 2014) this year too,? it added. The National Stock Exchange (NSE) will be launching the futures contract on India VIX from February 26. India VIX indicates investor’s perception of the market’s volatility over the next 30 calendar days. Higher the India VIX values, the higher is the expected volatility. Citing example of the last general elections (2009), BofA ML said ?the India VIX had jumped sharply prior to the declaration of results, showing the underlying fear of investors on the uncertainty of the results?. India VIX had increased from 36% on April 1, 2009, to 55% a few days before election results. However, the index fell sharply to 43% after the results were announced, the report said.

MSCI removes Lupin, Power Grid & Zee Ent

The Morgan Stanley Capital International (MSCI) Global Standard Indices will see the deletion of Lupin, Power Grid Corporation of India and Zee Entertainment Enterprises from global standard indices with effect from February 28. The deletion from MSCI?s Global Standard Indices is pursuant to Wednesday?s announcement and is part of the quarterly index review. Reacting to the news, the Lupin scrip lost 2.18% at R890, while Zee Ent fell 1.58% to R260.80 on the BSE. The Power Grid scrip declined 0.41% to R95.30.

Get live Share Market updates, Stock Market Quotes, and the latest India News and business news on Financial Express. Download the Financial Express App for the latest finance news.

First published on: 14-02-2014 at 05:19 IST
Market Data
Market Data
Today’s Most Popular Stories ×