Sensex, Nifty reverse early gains to end Muhurat Trading lower; India VIX jumps 6%
Dalal Street’s Diwali trading session ended on a cautious note as benchmark indices erased their opening gains and closed marginally lower. The India VIX surged over 6 per cent to 18.52, signalling heightened expectations of market volatility.
Indian benchmark indices reversed their early gains to end Sunday’s special Diwali Muhurat Trading session in the red, as rising volatility weighed on investor sentiment.
Following the closing auction, the BSE Sensex declined 28.62 points, or 0.04 per cent, to settle at 80,999.40. The NSE Nifty 50 fell 43.95 points, or 0.18 per cent, to close at 24,986.40, slipping below the 25,000 mark.
The session witnessed a sharp turnaround from the opening trade, when both benchmark indices had started higher. The Sensex had climbed nearly 400 points, while the Nifty crossed the 25,100 level during early trading.
Meanwhile, the India Volatility Index (India VIX), which measures expected market volatility over the near term, jumped 6.01 per cent to 18.52 during the session. The sharp rise indicated growing expectations of volatility in the market.
The increase in India VIX came alongside the reversal in benchmark indices, reflecting cautious sentiment among investors despite the positive start to Samvat 2083.
Muhurat Trading is a special one-hour stock market session held every year on Diwali to mark the beginning of the Hindu accounting year. Investors traditionally consider the occasion auspicious for making token investments and beginning new financial commitments.
Source: www.firstpost.com