InvestorQ : Is it true that the volatility of the various indices on NSE and BSE are falling each year and why is it happening?
prachi Patwardhan made post

Is it true that the volatility of the various indices on NSE and BSE are falling each year and why is it happening?

Answer
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2 years ago
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You can see for yourself from the table below how the volatility of various indices on the NSE and the BSE has been consistently falling over the last 7-8 years and this is the trend in the broad indices on the NSE and the BSE. Here the volatility is calculated based on the standard deviation of returns.

While it is hard to give any reason for this fall in volatility, the most likely reason is that the market has become more institutionalized and more algo driven which his making the market movements more orderly as compared to the past.

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