It has been an unnerving time for investors with markets showing no clear direction. This month, the benchmark Sensex has gained or lost more than 300 points on six of the 13 trading days.
Friday was particularly volatile, with the Sensex seeing a 1,500-point swing — amid sharp correction in financial stocks — before closing 280 points lower. The immediate trigger was the uncertainty surrounding the future of IL&FS and tighter liquidity conditions. The India VIX, a measure of investors’ perception about the risk of sharp swings based on options prices, rose about 10 per cent to 15.4.