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

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

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)

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.

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

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

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.

Key Nifty gainers today

Key Nifty gainers included Coal India, Bajaj Finance, ONGC, Bajaj Finserv.

Key Nifty losers today

Key Nifty losers today included Nestle, L&T, Bharti Airtel, Maruti Suzuki.

Key Sensex gainers today

Bajaj Finance, Bajaj Finserv, ICICI Bank, Tata Steel were the top Sensex gainers today.

Key Sensex losers today

Bharti Airtel, Nestle, L&T, Maruti Suzuki were the major Sensex losers today.