Market Volatility Persists as Indices Fluctuate

13 Feb 2024 , 12:30 PM

As mid-day approached on February 13, market volatility remained prevalent, reflecting a notable surge in the volatility index (VIX) by more than 17% over the past month. This surge has coincided with a decline in the percentage of stocks trading above their 20-day simple moving average (SMA), signaling shifts in market sentiment and momentum.

At 12:25 PM, the Sensex, India’s benchmark stock index, showed an upward movement, gaining 206.18 points or 0.29 percent to reach 71,278.67. Similarly, the Nifty, another key index, also exhibited a positive trend, rising by 39.10 points or 0.18 percent to stand at 21,655.10.

In terms of market breadth, approximately 1350 shares advanced, indicating an upward momentum in certain stocks. However, 1841 shares experienced a decline, suggesting some downward pressure on specific sectors or individual stocks. Meanwhile, 70 shares remained unchanged, reflecting stability in their prices during the observed period.

Despite the prevailing volatility, February 13 witnessed a modest market recovery, particularly evident in select sectors. Notably, railway stocks IRCON and RVNL exhibited strong performance, contributing to market resilience. Additionally, the Nifty PSU Bank index and the Nifty CPSE index traded over 1% higher, while the BSE Sensex saw a notable uptick, propelled by gains from Reliance Industries and ICICI Bank, which collectively accounted for nearly 50% of the market’s upward movement.

Sector-wise, realty, power, and metal indices witnessed declines of 1-2%, contrasting with buying activity observed in the auto, bank, and healthcare sectors. Amidst these fluctuations, the BSE Midcap index traded flat, while the smallcap index experienced a modest decline of 0.5%.