Traders shun hedges before vote on confidence in Modi win

Some, however, say investors may be underestimating a potential upset for BJP in Uttar Pradesh polls

Investors are so confident that Prime Minister Narendra Modi's party will win a key state election that they are feeling little need to hedge against another outcome.

The NSE Nifty 50 Index has rallied to within a whisker of its life-time high amid the lowest price swings in about six months, as data showed Asia's third-largest economy is recovering from Modi's shock cash ban. The cost of bearish options tied to the gauge relative to bullish wagers is the lowest since October, signaling muted demand for protection against losses.

"Investors are not hedging the downside risk as they don't expect anything negative