Demand for India Vix futures remains low despite market volatility

Roll costs, tenor and lot size limiting attractiveness

An Indian election poster for Narendra Modi and the BJP party

Indian elections have driven up equity market volatility but demand for India Vix futures to hedge volatility remains depressed due to issues with the contract, say market analysts.

With increased investor interest and market optimism ahead of an expected change in government, the Indian stock market is at record highs with the S&P BSE Sensex reaching 22,875 and the NSE Nifty reaching 6,861 on April 22.

Volatility has also spiked with implied volatility on the India Vix index more than doubling

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