India's Calm Stock Market Stumps Options Traders, Forcing Strategy Rethink

• India's stock market is exceptionally calm, with the NSE Nifty 50 barely moving and the India NSE Volatility Index at an all-time low.
• This low volatility challenges options traders, shrinking premiums and making traditional strategies less profitable.
• SEBI's crackdown on speculative retail activity, including scrapping popular weekly options, contributed to reduced volatility and a 35% drop in derivatives turnover.
• Domestic institutions now dominate the market, pouring over $80 billion, while foreign funds have pulled $17 billion this year.
• Despite the calm, Nifty 50's 9.8% gain lags global indices, and its high valuation forces traders to rethink strategies.

Why It Matters: India's unprecedented stock market calm is forcing options traders to adapt strategies amid regulatory changes.