Current Melt up , VIX and Correlation of India markets with S&P500 Future

[noob_magger]

Hi ,

1. How can Indian markets move in tandem with USA500 futures even on 5 min basis? Nifty is not part of S&P500.

2. We recently came to know that Softbank was buying calls which lead to call seller squeeze, VIX going up and thus leading to melt-up. But there was no call option buying by softbank in NIFTY but our VIX remains at elevated level

3. Is there any MSCI or emerging market index we can track for getting sense of FII buying as there will be lag due to time difference in operation ?

@siva
@nithin

WIll be great if you can answer.

[siva]

@noob_magger

How can Indian markets move in tandem with USA500 futures even on 5 min basis? Nifty is not part of S&P500.

Recently the correlation has increased, US markets are called as mother markets, everything should follow them unless they have their own strong factors to influence the direction ,
sooner or later decoupling should happen.

@noob_magger

We recently came to know that Softbank was buying calls which lead to call seller squeeze, VIX going up and thus leading to melt-up. But there was no call option buying by softbank in NIFTY but our VIX remains at elevated level

There is no evidence that recent gains in US markets are because of Softbank buying calls etc, also that amount is like small change (chillar) to US markets.
Coming to our vix, what do you mean by elevated level?

@noob_magger

Is there any MSCI or emerging market index we can track for getting sense of FII buying as there will be lag due to time difference in operation ?

Yes MSCI emerging market index is there, one can track that and also normal stats of FII buying/selling in Indian markets on daily basis you can track.