Volatility in Indian Stock Markets- Demystifying the Opportunity

Abstract

By volatility public seems to mean days when large market movements, particularly down moves, occur These precipitous market-wide price drops cannot always be traced to a specific news event Nor should this "lack of smoking gun" be seen as in any way anomalous in market for assets like common stock whose value depends on subjective judgment about cash flow and resale prices in highly uncertain future The public takes a more deterministic view of stock prices if the market crashes, there must be a specific reason.