As the indices have grown over the years, the psychological impact of the dips and highs has become larger. India vix is one indicator of how volatility swings happen in a short time frame. A 1000 point change today is the same as a 300 point change a few years ago, as it works out to roughly the same in percentage terms. Though we live in volatile times, a 1000 point fall makes one feel that something is drastically wrong. Headlines such as “10 lakh crores of investor wealth lost in 2 days” can have a deep impact on investors.
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