Fed Move, Political Risk Spark Gain in India Fear Gauge: Chart
Anxiety has been on the rise in India’s booming stock market.
(Bloomberg) -- Anxiety has been on the rise in India’s booming stock market, with a measure of volatility expectations climbing on Wednesday to the highest level since Jan. 31. The U.S. Federal Reserve’s decision to increase interest rates, which was announced after trading closed in Mumbai, and elections in the state of Gujarat -- where Prime Minister Narendra Modi’s party faces a tight race -- were weighing on investors. The two events have “brought in a lot of uncertainty in sentiment,” said Sanjay Sinha, founder of Mumbai-based Citrus Advisors.
--With assistance from Vivek Shankar
To contact the reporters on this story: Ameya Karve in Mumbai at akarve@bloomberg.net, Nupur Acharya in Mumbai at nacharya7@bloomberg.net.
To contact the editors responsible for this story: Divya Balji at dbalji1@bloomberg.net, Ravil Shirodkar
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