Nifty drops nearly 1%, India VIX jumps 12%: Why is Indian stock market volatile today

Stock market today: Nifty 50 and Sensex failed to hold early trade gains today (May 3) amid profit booking across sectors. At opening, Nifty 50 was 118 points higher at 22,766.35 against its previous close of 22,648.20. It rose about 0.65 per cent to 22,794.70 but later erased all gains, dropping 0.90 per cent to 22,454.80.

Stock market today: People look at a screen displaying the Sensex results on the facade of the Bombay Stock Exchange (BSE) building in Mumbai.(Reuters)

Read more: Ajanta Pharma share price soars over 13.5% to new all-time high

Meanwhile, Sensex opened 407 points higher at 75,017.82 against its previous close of 74,611.11. It extended gains to 484 points, or 0.65 per cent, to 75,095.18 but soon fell over a per cent to 73,831.42.

Unlock exclusive access to the latest news on India's general elections, only on the HT App. Download Now! Download Now!

The Indian stock market has experienced notable volatility as over the past five sessions, Nifty has been rising and falling alternatively.

Read more: ChatGPT outage: OpenAI's ChatGPT down for users across web and smartphone app

Additionally, BSE Midcap index was down 0.48 per cent while the Smallcap index was down 0.81 per cent at that time. 

Read more: Coforge share price falls 10% after Q4 results, brokerages cut target prices: Details

Volatility index India VIX dropped 12 per cent to the level of 15 which showed nervousness in the market.

What about sectoral trends?

All sectoral indices were in the red while Nifty IT, Nifty PSU Bank, and Nifty Media were the worst-hit sectoral indices as they fell more than 1 percent each. Nifty Pharma and Nifty Healthcare saw the least losses.

Discover the pivotal moments that shaped India's electoral journey on the Eras section of our exclusive Elections product. Access all content absolutely free on the HT App. Download now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs

• ABOUT THE AUTHOR

  

  Follow the latest breaking news and developments from India and around the world with Hindustan Times' newsdesk. From politics and policies to the economy and the environment, from local issues to national events and global affairs, we've got you covered.