Equity Market In India Why Is Implied Vol Higher Than Historical Vol For India Equity Market?

Why is implied vol higher than historical vol for India equity market? - equity market in india

Since the implied volatility (IV) is an estimate, while the historical volatility (or volatility of Statistics) is a calculation derived from real data. Implied volatility is generally higher than statisical because of "perceptions" of the participants in the potential market is moving downwards, while the volatility of statistics that reflect the actual movement of the market previously.