Street signs: US panic meter explodes, FPIs and DIIs unite as sellers, more

The Volatility Index (Vix), often dubbed the fear gauge, is flashing very different signals in the US and India. On Friday, the Chicago Board Options Exchange’s CBOE Vix surged 15.29 points, or 51 per cent, to 45.31 — its highest level in five years — suggesting deep anxiety in the market. Meanwhile, India’s Vix remained subdued at 13.76. Traders typically view a reading above 30 as a warning of turbulent conditions, often seen around major events such as elections or credit scares. Despite the calm in India, analysts caution that it might not last. “The US Vix shows markets have entered a phase of sharp swings, and India could follow, even if the Vix hasn’t picked it up yet,” said one analyst. The jump in US volatility follows a 10 per cent selloff over two days, triggered by concerns over President Donald Trump’s sweeping tariffs and the risk of a recession. The Nifty ended the week down 2.6 per cent at 22,904. 

 

The odd couple: FPIs, DIIs become partners in pullback

 

In an uncommon move, both foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) turned net sellers on Friday, dragging the benchmark Nifty down 1.5 per cent and wiping out ₹10 trillion in market capitalisation. Provisional data shows FPIs offloaded stocks worth ₹3,484 crore, while DIIs pulled out another ₹1,720 crore. This kind of synchronised exit marks a break from the usual pattern where one steps in while the other retreats. The last time both were net sellers was on December 16, 2024. Market watchers see this unusual alliance as a red flag. In 2024-25, FPIs have sold stocks worth ₹1.27 trillion, while DIIs — mainly mutual funds — have put in a record ₹6 trillion. 

 

Class in session: Sebi schools investors on money smarts

 

The Securities and Exchange Board of India (Sebi) is stepping up efforts to build financial literacy and investor awareness. Working with other financial regulators, Sebi is developing a Financial Literacy Assessment Portal under the National Centre for Financial Education. The portal will offer interactive quizzes, analysis tools, and enrolment programmes aimed at schools and investor groups. Chairman Tuhin Kanta Pandey, in his first public speech, underlined the need to educate investors and also outlined plans for a wide-ranging awareness campaign focused on cyberfrauds, stressing the urgency of staying alert online.