Is Indian stock market volatile?
This was the biggest-ever point drop for the index in a single day. Subsequently, London’s FTSE 100, Japan’s Nikkei and even Indian markets witnessed downfalls. Here are the reasons why the Indian stock market has been experiencing major volatility.
What is volatility index in Indian stock market?
Volatility Index is a measure, of the amount by which an underlying Index is expected to fluctuate, in the near term, (calculated as annualised volatility, denoted in percentage e.g. 20%) based on the order book of the underlying index options. India VIX is a volatility index based on the NIFTY Index Option prices.
Which is the most volatile stock in India?
List of Top 10 most Volatile Stocks in India –
- Sun Pharma.
- Suzlon Energy Ltd.
- Garden Silk Mills.
- Madhucon Projects Limited.
- KM Sugar Mills.
- 3i InfoTech Ltd.
- GVK Power & Infrastructures Ltd.
- Jubilant Industries.
What is stock market volatility?
Volatility is the rate at which the price of a stock increases or decreases over a particular period. Higher stock price volatility often means higher risk and helps an investor to estimate the fluctuations that may happen in the future.
Is Indian market overvalued?
The fact that the Nifty 50 has a high P/E and is the most expensive in the world suggests that it may be overvalued and that stock prices are comparatively high when compared to the global market.
What causes stock market volatility?
Often, market volatility is caused by economic factors, economic news, interest rate changes, and fiscal policy are a few topics that seem to consistently affect the volatility of the market. More recently, a leading factor has been political developments.
What is volatility of Nifty?
Historical volatility is standard deviation of daily returns of Nifty close price over a period of 10 day, 20 day, 30 day. Implied volatility of Call, Put Nifty options is computed based on the last trade prices of select OTM strikes for the respective days. Implied volatility is computed using Black-Scholes model.
How much Indian VIX is good?
Theoretically, VIX oscillates between 15 and 35. Any value around or below 15 represents low volatility against values higher than 35, which indicate high fluctuations in the market.
What are the 5 most volatile stocks?
Most Volatile Stocks To Buy Now
- Virgin Galactic Holdings, Inc. (NYSE: SPCE)
- XPeng Inc. (NYSE: XPEV)
- ContextLogic Inc. (NASDAQ: WISH)
- NIO Inc. (NYSE: NIO)
- Affirm Holdings, Inc. (NASDAQ: AFRM)
- ON Semiconductor Corporation (NASDAQ: ON)
- Advanced Micro Devices, Inc. (NASDAQ: AMD)
- Tesla, Inc. (NASDAQ: TSLA)
Which sector is most volatile?
Standard deviation is a mathematical calculation used to measure an investment’s volatility. The sector with the most volatility in the 2010s (the period between Dec. 31, 2009 and Dec. 31, 2019) was the energy sector, which was impacted by the wide fluctuations in oil prices.
What is a good volatility?
A beta of 0 indicates that the underlying security has no market-related volatility. Cash is an excellent example if no inflation is assumed. However, there are low or even negative beta assets that have substantial volatility that is uncorrelated to the stock market. The beta of the S&P 500 index is 1.
What is a good market volatility?
Assessing Current Volatility in the Market Generally speaking, when the VIX rises, the S&P 500 drops, which typically signals a good time to buy stocks.
What is a good PE ratio in Indian stock market?
As far as Nifty is concerned, it has traded in a PE range of 10 to 30 historically. Average PE of Nifty in the last 20 years was around 20. * So PEs below 20 may provide good investment opportunities; lower the PE below 20, more attractive the investment potential.
Is Nifty 50 overvalued?
The Nifty 50 PE ratio fluctuated during a five-year period from a peak of 42 to a low of 17.15. The fact that the Nifty 50 has a high P/E and is the most expensive in the world suggests that it may be overvalued and that stock prices are comparatively high when compared to the global market.