Mumbai, Jul 3 (IANS): In a rare sign, the Volatility Index (VIX) eased by 4.92 per cent on Wednesday, ahead of the Budget presentation on Friday.
The VIX is the gauge which measure market's expectation of volatility over the near term. Historically, VIX tends to surge ahead of any big developments like US-China trade talks, general election, exit poll due to uncertainty associated with the event.
"We believe such low implied volatility is indeed a positive indication for near term. Thus, we maintain our optimistic stance on the market and soon expect Nifty to rally beyond the immediate hurdle of 12,000," said Sneha Seth Derivatives Analyst, Angel Broking.
The Union Budget 2019 is largely expected to kickstart the slowing economy. The GDP growth which has been declining for three consequitive quarter hit a 5-year low of 5.8 per cent in the January-March quarter of FY19.