DON’T READ TOO MUCH INTO MARKET VOLATILITY

ERVOUSNESS in the equity markets ahead of election results is not uncommon.

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Yet, when the benchmark equity indices tumbled about 1.5% on Thursday, the speculation among Dalal Street players was that the crash could be due to the possible uncertainty over the results of the ongoing Lok Sabha elections. The Nifty Volatility Index (VIX) touched a 52-week high of 19.17 on Thursday, reflecting heightened investment risk going ahead. Most in the equity investment community were certain about a BJP win in the general elections to begin with. However, after the third phase of polls, there was a sense of unease among those who had predicted a BJP sweep. The general sense now is that the Narendra Modi-led BJP's projected win in the election, with the help of NDA part