Despite rally, market volatility near all-time lows

BSE Sensex has gained 8.6% in past 3 months

Despite touching all-time highs, Indian equities have seen surprisingly low volatility in the past few months, hinting at increased confidence about the market’s upward trajectory and absence of significant negative cues.

In the past three months, India VIX — a measure of investors’ perception about the risk of sharp swings based on options prices — has mostly hovered between 11 and 12 levels. The gauge touched a record low of 8.4 intra-day on May 15 before closing at 10.67. On Monday, it gained 1.9 per cent to close at 11.01.

“The market movement by and large has been one-sided for the past