After market shivers, volatility thaws out in second half of 2022

Revival in FPI flows, sharp recovery from year's lows in June helped calm investor nerves

The calendar 2022 has proven to be a study in contrast as far as volatility goes. If the first half saw stormy weather, the second half was an oasis of calm.

During the first six months of the year, the Sensex gained/shed 1 per cent or more over its previous day’s close on 55 occassions. By comparison, the second half saw just 22 such trading sessions.

Revival in foreign portfolio investor (FPI) flows and sharp recovery in the market from this year’s lows in June — amid improved economic and earnings outlook — helped assuage investor nerves.

The year started