In a rare occurrence, India’s benchmark stock index and its volatility index have moved in sync for seven consecutive days. Some market experts view this as a sign that traders are less worried about further declines in large-cap stocks. The Nifty 50 Index has fallen 14% from its September peak due to concerns over steep valuations and disappointing corporate earnings.
“The lack of hedging signifies expectations of more stability in large-cap names,” said Sonam Srivastava, founder and CEO of Wright Research. She added that larger stocks may perform better if the market continues to decline, and her firm recently shifted its hedges to mid-cap stocks rather than the Nifty 50.
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