As heightened geopolitical tensions sent global markets tumbling on Thursday, Dalal Street’s own gauge of volatility hit the highest level recorded since June 2020. The NSE’s India VIX index – also known in market parlance as the fear gauge – surged as much as 38.4 percent to almost the 34 mark.
Indian equity benchmarks Sensex and Nifty50 tanked more than three percent amid a global sell-off after Russian President Vladimir Putin announced a military operation in Ukraine.
All sectors were deep in the red, with the heavyweight financial services space being at the forefront of the market-wide crash. The Nifty Bank index, along with its private bank, PSU bank and financial services peers, tanked around three percent.
In a televised address, Putin claimed that it is intended to protect civilians. He said the action comes in response to threats coming from Ukraine, and that Russia is not targeting to occupy Ukraine.
Broader markets also bore the brunt of the bloodbath on Dalal Street, with the Nifty Midcap 100 and Smallcap 100 barometres plummeting more than three percent each. The smallcap index entered bear territory, having retreated more than 21 percent from its peak.
The India VIX index cooled off somewhat in mid-morning deals, though still holding above the 30 mark. At 10:25 am, the fear index was up 25.5 percent at 30.8.
(Edited by : Akanksha Upadhyay)