Street signs: Vix hits snooze, IPO stampede, and Damani's double down

Market calm deepens with Vix below 10, IPOs surge to a monthly record, and Radhakishan Damani raises his stake in Blinkit's parent Eternal, signalling faith in quick commerce

Vix hits snooze: When nerves take a timeout

 

The India Volatility Index (India Vix), often called the ‘fear gauge’ and a key measure of market turbulence for investors and traders navigating the Indian equity markets, fell below 10 in the last two trading sessions — a rare occurrence in recent years. Outside of occasional spikes during Budget season or general elections, the Vix has remained muted since 2021. A low reading signals that traders expect near-term market swings to be minimal. This drop lines up with positive global cues, rising foreign inflows, and improved sentiment from goods and services tax reforms. Yet some experts warn that such an unusually low level may reflect overconfidence and complacency. Many believe this calm might last only until the second-quarter earnings season, when volatility could resurface.

 

IPO stampede: Of small floats and big noise

 

Close to a dozen mainboard initial public offerings are opening for subscription this week, bringing the monthly tally to 19 — the highest in any calendar month since at least the turn of the century. What is driving this rush? Analysts link the flurry to the equity rebound this month, abundant liquidity, and strong subscription rates for recent issues. This has encouraged investment bankers to roll out offerings, most of which are modest in size, typically under ₹500 crore, while larger planned floats like Tata Capital, LG Electronics India, and Pine Labs are proceeding with caution. The contrast underscores that the primary market, while active, is not entirely buoyant.

 

Damani’s double down: Betting on Blinkit

 

Radhakishan Damani, the astute investor and promoter of Avenue Supermarts, which runs the DMart retail chain, turned heads by acquiring a 0.5 per cent stake in Eternal, the parent company of Zomato and quick-commerce leader Blinkit. The strategic move signals confidence in Blinkit’s fast-growing business model, which has, ironically, contributed to a derating of DMart’s shares, a traditional retail player. DMart’s own quick-commerce venture, DMart Ready, competes directly with Blinkit but has yet to match its scale. Markedly, in India’s corporate rankings, Avenue Supermarts — where Damani holds nearly 75 per cent — trails just behind Eternal, with a market capitalisation of ₹3.11 trillion (24th) versus Eternal’s ₹3.25 trillion (23rd).