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The difference in the volatility gauges, CBOE (Chicago Board Options Exchange) VIX and the India VIX, indicates varying reactions to two unexpected events.
The India VIX signals the growing fear among investors after the government announced a currency switch.
The index has risen by 14.5% since 7 November, a day before the demonetization of Rs500 and Rs1,000 banknotes.
The difficulties visible in implementing the scheme, its negative economic fallout and the uncertainty it has triggered appear to have worried investors.
The global volatility gauge, however, has seen a 29% decline since Donald Trump’s surprise victory in the US presidential elections.
There, investors seem convinced about the brighter side of this verdict’s impact for business and markets.