Markets typically witness huge swings on Budget day. The Sensex has swung an average 3.1 per cent in past 21 budget day sessions, an analysis of trading data shows. This time, however, investors can expect a relative calm if the volatility gauge is anything to go by.

The India VIX index ended at 13.53, down 1.2 per cent on Thursday. The index has cooled off sharply from May’s high of 28.7. Market players say the low reading signals that traders aren’t expecting any big move. “Trading was cautious and not many positions seem to have built up as reflected by the low India VIX. Expectation is low due to lack of fiscal space, and most reforms having been implemented,” says Deepak Jasani, head (retail research), HDFC Securities.............................BS