India VIX jumps over 20% amid Ukraine-Russia tensions, experts expect higher volatility to stay

India VIX jumps over 20% amid Ukraine-Russia tensions, experts expect higher volatility to stay

Experts said volatility is expected to remain high in the coming days given the global concerns but investors should not get bogged down by short-term worries and pick quality stocks for the long term





February 14, 2022 / 03:55 PM IST





Stock market volatility increased significantly on February 14 for reasons including tensions between Russia and Ukraine that translated into oil supply concerns, taking crude prices to a more than seven-year high and rising expectations of aggressive rate hikes by the US Fed to fight inflation.

India VIX, which measures expected volatility in the equity market, jumped to 22.72 on February 14, the highest level since January 27, when it was at an intraday high of 23.86.

The volatility index was 22.53 on the NSE at 14:28 hours IST, up 20.58 percent over the close of 18.68 February 11.

Generally, volatility rises with the increasing uncertainty in the equity markets and when it subsides, the market turns stable, supporting the bulls over the bears.

"The volatility has gone up with an increase in uncertainty over tensions between Russia and Ukraine. The market is under downward pressure due to the looming threat of war. It is likely to have a