New Delhi, March 16 -- Investors have ramped up purchases of a hedge to protect their portfolios, fearing that the escalating war in West Asia could sink Nifty 50 to its 52-week low this month, even as analysts expect an odd bounce during the correction.

The demand for the 22,000 Nifty put option has surged, pushing its price up by 15 times in two weeks since the conflict, as the oil price spike spooked investors worldwide.

The put was trading at 167.15 a share (65 shares equal one contract) on Friday, compared with Rs.10.9 on 27 February, a day before the war.

Investors purchase put options to protect their portfolios from downside risk. It is the opposite of a call option, which is purchased during bull markets.







Demand for the...