INDIA VOLATILITY INDEX (VIX)

On Tuesday, May 14, the India VIX, a measure of the market’s anticipation of volatility in the near future, broke over the 21 level.

Context:

• The increase indicates that, in comparison to 15 days ago, traders’ or market participants’ apprehension of the anticipated volatility has increased. Right now, market participants are afraid of what will happen in the ongoing Lok Sabha elections.

About INDIA VOLATILITY INDEX (VIX)

• The market’s anticipation of volatility in the near future is gauged by the Volatility Index, also known as the Fear Index or VIX.
• In finance, volatility is sometimes known as risk and is defined as the “rate and magnitude of changes in prices.” The market typically moves sharply up or down during times of market volatility, and the volatility index typically rises during these times. The Volatility Index decreases as volatility decreases.
• Based on the order book of the underlying index options, the Volatility Index is a measure of the degree to which an underlying index is anticipated to fluctuate in the near future. It is computed as annualized volatility and expressed in percentage terms, such as 20%.
• The NSE uses the NIFTY Options order book to calculate the India VIX volatility index.
• The NSE uses the NIFTY Options order book to calculate the India VIX volatility index. The best bid-ask quotes of NIFTY options contracts for the upcoming month and those traded on the NSE’s F&O segment are used for this.
• The India VIX shows investors’ expectations for the market’s volatility over the following 30 calendar days, or how volatile they believe the market will be in the near future.
• According to NSE, the predicted volatility increases with higher India VIX readings and vice versa.
• The India VIX has increased by around 53% to be above 20 thus far in May. In afternoon session on Tuesday, the index reached a high of 21.88.

Additional Information

• Based on option pricing from the S&P 100 Index, the Chicago Board of Options Exchange (CBOE) was the first to create the volatility index for US markets in 1993. The methodology was changed in 2003, and S&P 500 Index options served as the foundation for the new volatility index.
• “VIX” is a trademark owned by the CBOE. Standard & Poor’s has authorized NSE to use the mark in the India VIX name and for related purposes, with consent from the CBOE.

FLiRT

• According to genomic surveillance data, the novel coronavirus variant known as KP.2—nicknamed FLiRT—has been in circulation in India since November 2023 and has been connected to an increase in Covid-19 cases in the US, UK, and South Korea.

Context:

• Roughly 250 KP.The nation’s genome sequencing consortium, INSACOG, has only released two sequences thus far.

Key Takeaways

• 2 is a viral variant descended from JN.1. It is a novel mutation sub-variant of the Omicron lineage.
• 2 is known by the moniker FLiRT, which is derived from the initials for two immune escape mutations that permit the virus avoid being recognized by antibodies.
• The ability of FLiRT to elude immunity from vaccinations and prior infections is one of its defining characteristics. Its symptoms, which include fever, coughing, exhaustion, and stomach problems, are comparable to those of previous variations.
• According to the US Centers for Disease Control and Prevention (CDC), there aren’t any signs as of yet that would suggest KP.2 would produce a more serious sickness than other strains.
• On the other hand, FLiRT is more likely to cause a wave of infections due to its increased transmission rate, just like its parent JN.1. Additionally, since most people are reluctant to get tested if they don’t have significant symptoms, the diseases are likely to spread discreetly.

India’s Case

• Of the 250 KP.2 genomes that INSACOG sequenced, 128 sequences, or slightly more than half, came from Maharashtra. In March, the greatest quantity of KP.2 sequences was discovered.
• Global data indicate that India has been reporting the greatest proportion of KP.2 sequences worldwide.
• 2 sequences accounted for 29% of the Covid-19 sequences that India uploaded within the last 60 days to the world’s largest collection of these sequences, the Global Initiative on Sharing All Influenza Data (GISAID).
• 1 is still, nevertheless, the most common strain of SARS-CoV-2 in the nation.

Manipur accounted for 97% of displacements in South Asia  

This is the largest number of Indian displacements caused by conflict and violence since 2018, according to a report from the Geneva-based Internal Displacement Monitoring Centre (IDMC).

Key highlights on Internal Displacement in India (2009-2023):

• The internally displaced people (IDP) who are presently residing in India are depicted in the above figure.
• The people who have been displaced through the end of each year are the subject of this term. By the end of 2023, India had 0.61 million of these individuals.
• With 2.5 million additional internal displacements as a result of disasters in 2022, India was among the top five countries worldwide.

Causes:

• Natural: In 2023, floods, storms, earthquakes, and other calamities caused more than 500,000 internal displacements in India.
• Artificial: Due to regional war and land disputes, the number of internally displaced persons has surged by 22.6 million over the past five years (2009–2023), with the two largest rises occurring in 2022 and 2023.
• The state of Manipur accounted for more than one-third of the displacements, with over a fifth going to Mizoram, a neighboring state, and smaller amounts to Assam and Nagaland.

Regional Scenario (2009-2023):

• 69,000 people were displaced across South Asia in 2023 as a result of war and violence; the number of displacements from Manipur violence alone was 67,000, the largest since 2018.
• Following the planning of a “Tribal Solidarity March” in the hill areas of Manipur to express opposition to the Meitei community’s desire for Scheduled Tribe (ST) status, violence broke out.
• Conflicts between the Kuki and Meitei ethnic groups resulted, especially in Bangladeshi and Myanmar border regions.

Global Scenario (2009-2023):

• In the previous five years, the number of IDPs has increased by 50%. According to the research, as of 2023, 68.3 million people were displaced globally as a result of conflict and violence.
• At least 8.7 million people have been internally displaced by catastrophes in 88 countries and territories by the end of 2022, with India being one of them.
• Nearly two-thirds of new conflict movements in 2023 were caused by conflicts in Sudan, the Democratic Republic of the Congo (DRC), and Palestine. In the Gaza Strip, there were 3.4 million new movements in the last quarter of 2023, resulting in 1.7 million internal displacement by the end of the year.

Way Forward:

• Conversation and Mediation: To resolve fundamental problems like land conflicts, encourage communication between groups that are at odds with one another, such as the Meitei and Kuki.
• Legal Framework: To safeguard minority rights and resolve complaints that could incite violence, strengthen existing legal frameworks.
• Initiatives for Peacebuilding: Put into action initiatives for peacebuilding that support mutual understanding and social cohesiveness amongst various racial and ethnic communities.

How far are India’s internal security challenges linked with border management particularly in view of the long porous borders with most countries of South Asia and Myanmar? (UPSC IAS/2013)

Sangam: Digital Twin Initiative enters Stage I

The selected participants for the first stage of the “Sangam: Digital Twin with AI-Driven Insights Initiative” have been made public by the Department of Telecommunications (DoT).

What is Digital Twin Technology?

• A digital twin is an electronic replica of a real-world item, individual, or procedure, placed within a virtualized replica of its surroundings.
• An business can eventually be able to make better judgments by using digital twins to assist replicate real-time circumstances and their outcomes.

About Sangam: Digital Twin Initiative

• In keeping with the vision for 2047, it was launched in February 2024 and corresponds with the technological developments in communication, computation, and sensing over the previous ten years.
• In order to raise awareness and spark interest, the Department of Telecommunications (DoT) will launch a campaign to engage potential participants, including academics, business leaders, and other pertinent stakeholders.
• This initiative has two stages: It will take place in one of the largest cities in India and be divided in two stages.
• First Stage: A period of exploration with the goal of opening doors and stimulating the creative imagination to realize possibilities.
• Phase Two: A hands-on presentation of particular use cases, creating a future roadmap for cooperation and extending effective tactics in subsequent infrastructure initiatives.

Objectives:

• To demonstrate practical implementation of innovative infrastructure planning solutions.
• To develop a Model Framework for facilitating faster and more effective collaboration.
• To provide a future blueprint for scaling and replicating successful strategies in future infrastructure projects.

Features:

• It is an example of a cooperative step forward in redefining infrastructure design and planning.
• It combines next-generation computational technologies, IoT, 5G, AI, AR/VR, AI native 6G, Digital Twin, and other technologies, promoting cooperation between government agencies, infrastructure planners, tech companies, startups, and academic institutions.
• Sangam unites all parties involved with the goal of converting creative concepts into workable solutions, closing the gap between conception and execution, and opening the door for revolutionary advances in infrastructure.

In India, the term “Public Key Infrastructure” is used in the context of: (2020)

(a) Digital security infrastructure

(b) Food security infrastructure

(c) Health care and education infrastructure

(d) Telecommunication and transportation infrastructure