The current rise in the India VIX index suggests that investors are losing confidence in the rally or that a correction is imminent. The India VIX index, the so-called fear index, rose 14%, to a 14-month high during the day on Wednesday. The volatility index typically has an inverse correlation with rising markets. The current rise in the fear index suggests that investors are losing confidence in the rally or that a correction is imminent. Also, any major fiscal slippages, reintroduction of long term capital gains (LTCG) and new taxation may result in the much-needed markets correction,” said Bodke.

Source: Mint January 24, 2018 22:07 UTC