Is the Market in a Reset Mode?

Over the past week, the Indian markets have experienced a noticeable spike in volatility, sending a jolt through investors and traders alike. Across five trading sessions, three saw daily price swings exceeding the average range of the last 10 days, a sign that uncertainty is on the rise. But the real drama unfolded last Friday when Nifty, India’s benchmark index, plummeted almost 2 per cent from its day’s high in a matter of minutes. This sudden drop was triggered by a media report suggesting that the government might introduce the Direct Tax Code in the final budget for FY25, scheduled for July 2024.