India VIX Rises After Foreigners Buy Index Options for 22 Days

India’s benchmark gauge of protection against stock market swings climbed to a one-week high amid the longest stretch of index option purchases by foreigners in seven years.

The India VIX Index rose 2.2 percent to 17.65 at 11:59 a.m. in Mumbai, poised for a one-week high. Foreign investors bought a net $ 84.9 million of CNX Nifty Index options on Jan. 16, capping a 22nd day of purchases, the longest streak since the period ended Aug. 7, 2007, data compiled by Bloomberg show. The put-call ratio rose to 1.30, the highest level since Oct. 30.

“Foreigners are buying at-the-money puts to hedge their massive cash positions,” Manoj Vayalar, assistant vice president of derivatives at Religare Securities Ltd., said in a phone interview. “Foreigners are getting cautious.”

International investors purchased $ 274 million of stocks on Jan. 15, paring this year’s outflows to $ 41.3 million, according to data compiled by Bloomberg. Foreigners bought $ 16.1 billion of local equities last year, the second-highest amount among eight Asian markets tracked by Bloomberg.

The 50-member Nifty rose 0.4 percent to 8,547.20, on course for a third day of advances. The gauge, which climbed 31 percent last year for its best annual increase since 2009, is valued at 15.6 times its projected 12-month earnings, compared with a multiple of 10.6 for the MSCI Emerging Markets Index.

To contact the reporter on this story: Santanu Chakraborty in Mumbai at

To contact the editors responsible for this story: Michael Patterson at Phani Varahabhotla, Ravil Shirodkar

You may also like...

Rules of Discussion on India VIX Rises After Foreigners Buy Index Options for 22 Days

1. This forum is for discussion of financial markets. Please respect others view even if they are contrary to you.
2. Member's comments should lead to value addition in forum discussion.
3. If anyone is found making repetitive Explicit/Abusive/Racial comments, his account shall be banned and old posts will be deleted.
4. Providing Advice/Recommendations/Tips is fine but it should be free. Members cannot ask to be paid for it. Paid Advice is strictly prohibited
5. Spam links are not allowed. Too much promotion or using Contact info in ID will lead to account ban.
IMP : Members are requested to flag any violations to keep Forum Clean.
Loading comments …