Mismatch seen in Indian, global stock market volatility indices

Host of local and global surprises likely in first half of this year with Lok Sabha elections, Brexit set to take centre stage

Indices measuring stock market volatility and policy uncertainty in India seem disconnected with their global counterparts. 

A combination of positive macroeconomic factors — such as falling crude oil prices and relative insulation from the trade war — has resulted in a widening gap, according to experts. 

This may also mean sharp jumps in volatility could come into play for markets that may not have discounted events like the local elections and the manner of Brexit, all of which are expected to take centre stage in the first half of 2019. 

The CBOE Dow Jones Industrial Average Volatility Index, called the ‘fear gauge’ for