New Delhi, July 7 -- With geopolitical risks easing, crude oil prices retreating sharply from recent highs, and the intensity of foreign capital outflows decreasing, the domestic market appears to be on a calmer, firmer footing.

India VIX, the volatility index, is now at a five-month low, which indicates the market is not expecting any major surprise in the near future.

With India's economic growth outlook remaining robust, inflation risks easing, and investors scaling back bets on US Fed rate hikes, could a decline in volatility lure institutional investors?

The fear index dropped to a record low of 8.72 in January this year, signalling a sharp decline in perceived market risk. However, the Middle East Conflict, a sharp jump in crude ...