Why Are FIIs Selling? Watch the MOVE Index! | NIFTY-50
WHY ARE FIIs SELLING? WHEN WILL THE SELLING STOP? | PART 2 – WATCH THE MOVE INDEX | NIFTY-50 CRASH
The NIFTY is currently witnessing a period of extremely elevated volatility. It started off with the Federal Reserve starting its most recent rate cut cycle in the US on 18-Sept-24 with a big bang 50 basis points cut, and equity markets around the world, including the NIFTY-50 Index in India cheered the start to rate cuts in the US with very strong rallies. The NIFTY hit an new all-time-high on 26-Sept-24. However, since then, there’s been a dramatic reversal in the fortunes of the NIFTY and the NIFTY has corrected by almost 11% from its most recent all-time-high, and even now, there are no signs that we are anywhere near the end of this volatile phase.
In Part 1 of this series, I tried to examine how the NIFTY has typically trended in previous business cycles in the aftermath of the Fed starting to cut interest rates. This video is available at:
Why are FIIs Selling? When will the Selling Stop? | Part 1 - This Too Shall Pass! | NIFTY-50 Crash
In Part 2 of this series, I endeavor to delve into the key factor/s that are driving the current bout of volatility in equity markets in India right now, and also provide a data-driven explanation as to why equity market necessarily tend to become volatile once the Fed starts to cut rates. Furthermore, I have also tried to explain how the MOVE Index, which tracks volatility in US government bond market can potentially play a pivotal role in helping investors navigate the equity markets during course of this on-going phase of volatility in equity markets. So do watch this video till the end.
