On the back of solid flows, Sensex and Nifty gained about 7.7% last month
It's been an unnerving time for investors with the market swinging wildly both ways in the past few days. This month the benchmark Sensex has gained or lost more than 300 points on six of the 13 trading days. Friday was particularly volatile with the Sensex seeing a 1,500-point swing, amid sharp correction in financial stocks, before closing 280 points lower. The immediate trigger was the uncertainty surrounding the future of IL&FS and tighter liquidity conditions. The India VIX, a measure of investors' perception about the risk of sharp swings based on options prices, rose about 10 per cent to 15.4. "For VIX, 16-17 is the level to watch out for and any up move beyond this level will be a sign of caution," said Sneha Seth, derivatives research analyst, Angel Broking. "For Nifty, there is a likelihood of a steep correction to 10,850 levels if the market does not go past 11,350 in the next few sessions." Bank stocks in particular may be in for a rough ride, says Seth, considering ...
India is already among the best-performing markets globally this fiscal year
Since 2014, India has underperformed emerging market (EM) peers during periods of sharp rallies in crude oil prices
S&P BSE Sensex and the NSE Nifty50 have set fresh records as local investors ploughed money into shares
Invest gradually and on corrections to reduce losses
For now, Q1 expectations are watered-down, particularly for consumer-oriented sectors
Historically, FPIs have dominant market price-setters, given their size, trading patterns in India
Sensex touched a high of 29,539.85 points and a low of 29,350.17 points during the intra-day trade
The Sensex surged 0.7 per cent to close at 28,208.6 points on the BSE, reclaiming the highest level since August 2015