Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Abstract

Investors Behavior Role in Market Decision - An Impact of Vix Futures on Vix Spot

Author(s): Parmeshwari, Dr. Vijay Kumar Reddy

The present study has focused on the investors’ behavior role in investment decision making. The study has considered the irrational and rational behavioural aspect and collected the primary data with the simple random methodology. The study also considered the secondary data of volatility base index VIX from nse India. The VIX will tell us the market volatility picture of National Stock Exchange India. The present study made an attempt to know impact of Volatility Index – VIX future on the Spot market volatility. The study has considered the historical data of NSE India from the period of 2015 to 2020. In the study VIX future influence on the VIX spot has been examined with the statistical method of Ordinary least square and the result reveals that the VIX future significantly influenced the VIX spot market and with the ARCH family model Volatility of VIX future impact on the Volatility of VIX spot examined. The GARCH test result reveals that the VIX future volatility influenced positively the VIX spot market.

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