India’s VIX Index Erases Gains After Stocks Climb on Greece Deal

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India’s benchmark gauge of option costs slumped the most in a week as stocks rallied after Greece reached an agreement with its creditors to remain in the euro.

The India VIX Index lost 4.7 percent to 16.27 at the close in Mumbai after climbing as much as 3.8 percent earlier. The 50-stock CNX Nifty advanced 1.2 percent, its steepest increase since June 22. The MSCI Asia Pacific Index rose 1.1 percent.

Greek Prime Minister Alexis Tsipras surrendered to European demands for immediate action to qualify for up to 86 billion euros ($95 billion) of aid the country needs to stay in the euro. Monday’s drop in VIX follows three weeks of gains, as foreign investors purchased Nifty index options for 19 days through Friday.

“Traders are unwinding speculative positions as some uncertainties regarding Greece seems to be decreasing,” Sanjiv Bhasin, executive vice president at India Infoline Ltd., said in a phone interview from New Delhi. “Buying puts at these levels may be a good strategy as premiums have fallen.”

Nifty put options with a strike price of 8,300 rupees and 8,500 calls were the most popular by the number of outstanding contracts, according to data compiled by Bloomberg.