08 Feb How to make volatility your friend
Posted at 03:55h
in Insights
Differences in the volatility cycles of earnings and that of market prices often give useful information to investors, if they are watching closely
February 08, 2023 / 09:25 AM IST
There are many reasons for volatility of prices to deviate from business earnings. Maybe it is belief of a different macro environment. (Representative image)
The term “volatility” finds unique use in Indian stock market lingo. I am not aware of any other market where “volatility” is so frequently referred to by market participants. In India, it stands for corrections/crashes many a time. Indian TV channels when describing markets on a day as having gone up or down (even a 50 point move in the Nifty) term them as “volatile” markets.
However, volatility in its universal sense refers to a move away from trend –…