ADVERTISEMENT

Volatility Gauge Jumps Most In 3 Months Amid Rising Korea Tensions

Equities turned more volatile amid global tensions triggered by North Korea’s nuclear test.

Men look up at an electronic ticker board that indicates stock figures at the Bombay Stock Exchange (BSE) in Mumbai. Photographer: Dhiraj Singh/Bloomberg.
Men look up at an electronic ticker board that indicates stock figures at the Bombay Stock Exchange (BSE) in Mumbai. Photographer: Dhiraj Singh/Bloomberg.
Volatility Gauge Jumps Most In 3 Months Amid Rising Korea Tensions

Indian equities turned more volatile amid global tensions triggered by North Korea’s sixth nuclear test.

The India Volatility Index, a measure of swings in large stocks, surged 19 percent intraday, the most in over three months. The index indicates expected market volatility over the next 30 days.

As concerns rise over tensions between the U.S. and North Korea, Asian equity markets remained under pressure with Japan’s Nikkei 225, Hong Kong’s Hang Seng and India’s Nifty 50 Index falling about 1 percent each.

The Nifty is likely to remain below 10,000-9,980 for the short-term, said Chandan Taparia of Anand Rathi Securities, adding, the support for the index was seen at 9,820. “The Nifty Bank stuck in a range of 23850-24500,” he told BloombergQuint by phone.