US and Global Stocks are more Volatile than Indian Stocks - What is the Reason?

Is it only me or has anyone else also observed this ? Stocks in US Markets are damn volatile. Every stock right from the biggest stocks (FAANMG) to small stocks. These stocks easily move 10-30% as if its nothing. Whereas here in our markets if an heavyweights falls by 2-3%, all hell breaks loose. Whats the reason for such a deviation ? Why cant our markets move like that? Is it a good or a bad thing? @nithin and other please help me with answers to these questions.

In my opinion, it is due to more market participants (and their difference of opinions)

Lower volatility is good for markets, so it is good. :slight_smile:

About why they are moving so much, it is because some of these large companies have gone up significantly. The trading activity in them is also at all time highs and there are large sections of the market which have opposing views. In the US you can short sell stocks by borrowing and that market is huge in US, unlike in India. So my guess is that a large trading community shorting these stocks are also the reason for huge volatility. In India most shorting happens in futures and stock futures aren’t really a large market.

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Other than high valuations, another reason is that bond yields and the US inflation is increasing.

when companies worth trillions of dollars move 25-30% a day. I wonder what it is other than speculation at its best. central banks like fed says price stability is our goal. but this is complete opposite to what they stated.