Lates News

The volatility of the Indian stock market has been consistently higher than other regions in Asia, indicating that investors have shown stronger concerns about issues such as India's energy dependence, overvaluation, and corporate governance. The volatility index in India is still close to its peak on March 9, the highest since June 2024. For Japan and Korea, two countries heavily reliant on fuel transported through the Hormuz Strait, their respective volatility indicators have dropped from the highs caused by the Iran conflict. The Chicago Board Options Exchange Volatility Index has also decreased. This difference suggests that India's risk premium is becoming more stubborn in the face of an energy crisis impacting the economy. Even before the conflict, India was facing issues such as overvaluation, risks of interruptions in AI technology due to a lack of prominent chip manufacturers, and currency depreciation. The sell-off has pushed the country's stock index to levels close to those during the market turmoil caused by US tariffs imposed a year ago, while at the same time, the country's largest private bank has raised concerns about governance issues.