Indian Stock Market Movers Today – Nifty50, Nifty VIX Up as Volatility Increases

The Nifty 50 benchmark stock index, is fighting back into the close of the week, trading up 0.67% to hold water above the 22,000 mark. The sentiments of uncertainty that have gripped the market in recent days is alleviating a little as the end of the week nears. Indian equity markets have entered a period of notable turbulence, with the Nifty50 posting a 3.3% decline in the past few days after coming off 52 week highs of 22,775.70.

Market volatility usually shows its' head in the VIX, with the US VIX increasing 9.12% on Thursday, the A-VIX (Australian VIX) up 19.98% today, and the Nifty VIX (INDIA_VIX) up more than 4% at the time of writing. Whilst other markets have spiked in volatility for longer than the Nifty, the last 5 days has shown a 20%+ increase in the volatility according to the India VIX. Volatility presents opportunities to traders, but also significantly increases risk to those that do not plan accordingly.

There are plenty of gainers on the Nifty50 today, with 29 stocks advancing so far into green territory, 20 declines, and just the 1 stock unchanged. BAJFINANCE is the leading performer on the index, up 3.3%, whilst M&M are also green to the tune of 2.77%.

On the flip-side of the coin, the biggest fallers today are BAJAJ-AUTO (down 2.23%), HCLTECH (-1.5%), and TATAMOTORS (down 1.17%). The best performing stock on the index over the last 30 days, EICHERMOT (+17%) is mildly red to end the week, losing 0.27%.

Adding to the roster of financial responses to these developments, the Indian rupee slid further down to hit a new low, having lost more than 0.5% against the US dollar over the past month. This downturn can be attributed to the strengthening of the US dollar index, which has emerged as a favoured safe-haven asset in times of geopolitical strife, as well as the changes in dynamic at the US Federal Reserve which may keep interests rates higher for longer than earlier anticipated.

Meanwhile, gold, traditionally considered a secure asset during periods of political and economic uncertainty, has experienced a surge. So far on Friday, amidst the tensions, the price of gold increased by 0.2%, an uptick that underscores the cautious approach taken by investors who are hedging against heightened risks. Over the last 30 days, the gold price has spiked more than 9%, taking the metal to all time highs.

The Indian stock market's volatility can in part by attributed to the geopolitical uncertainty from the weekend gone, but also comes at a time when investors were already navigating a complex economic landscape marked by concerns about inflation and interest rate hikes by central banks globally. Markets are keeping a close watch on events unfolding that could exasperate the situation, with the Middle East, given their potential implications on global trade, energy prices, and financial markets an area of focus. It should also be noted that when coming off 52 week highs, it can be normal market behaviour to see some retracement and tests of previous levels.

During these times of heightened volatility, remaining vigilant and responsive to news updates can be important, as fundamental developments could sway market dynamics further.