India VIX today slumped as much as 15.4 per cent, raising odds of a Santa Claus rally.
The index heads towards its biggest one-day fall since September 18 but not yet serving as a contrarian indicator.
The US Federal Reserve has announced a gradual tightening cycle with its first rate hike in nearly a decade.
The NSE index has fallen only 4 out of 20 times in December since 1995 vs 6 times of MSCI Asia Ex Japan index, according to Reuters Calculations.
Based on history, Nifty should end near 7,950-8,000 for December 2015 to be a positive month.
Also, 8,000 holds highest open interest among call options, according to NSE data.
Asian EMs including India rose; dovish Fed may boost risk appetite and flows.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.