Equity indices to remain volatile as India votes

Last Updated: Sun, Apr 14, 2019 14:16 hrs

Mumbai: The Indian equity markets is expected to face a volatile week ahead as the ongoing general election season progresses and India Inc comes out with fourth quarter (Q4) earning numbers.

"India VIX (volatility index) has climbed above 20 levels anticipating higher incoming volatility due to the general election. However realised volatility remains much lower. This means market participants are preparing for stock indices move wildly in the coming weeks," said Sahil Kapoor, Chief Market Strategist-Research, Edelweiss Wealth Management.

"We believe any correction, therefore, is going to be an opportunity to buy. The Indian economy is now bottoming out and monetary policy coupled with better fiscal management will lead to better outcomes ahead."

The second phase of the general election will be held on April 18, when 97 constituencies spread across 13 states and union territories will go to the polls.

"Expectation of present government coming back to power will continue to boost sentiment," said D.K. Aggarwal, Chairman and Managing Director, SMC Investments and Advisors.

But, Aggarwal said, "volatility will continue to rule the domestic market."