Latest News As the lengthy May Futures & Options (F&O) series nears its conclusion on Thursday, market participants are left grappling with heightened volatility and a series of losses that have left bulls on edge. The Nifty 50 index, a benchmark for Indian equities, has experienced a sharp decline of 400 points from its Monday high of 23,110, unsettling investors and bringing the index perilously close to turning negative for the series. The recent downturn follows a robust 1,200-point rally from the May 14 lows, yet the market has shown no signs of recovery during the past three sessions.
Wednesday's trading ended with the Nifty at its lowest point of the day, marking the fourth consecutive day of losses. This has raised questions about whether the market's volatility is a form of pre-positioning ahead of the crucial Lok Sabha election results scheduled for June 4, or if traders are merely lightening their positions in anticipation of a volatile reaction to the election outcome. Despite the turmoil, the Nifty remains up by 130 points for the series.
However, Wednesday's low was the lowest in five trading sessions, with the index making lower highs over the past two days. The India VIX, a measure of market volatility, stayed relatively stable at 24, suggesting that investors are bracing for potential turbulence ahead. One factor complicating the narrative of pre-election jitters is the continued strong performance of government-oriented sectors, particularly defence.
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