The India VIX, which indicates market uncertainty, dropped another 8% to its lowest level in over three weeks, implying that investors have started to finally expect some stability in the market despite the weak ceasefire.The benchmark stock indices ended nearly 6% higher for the week, ending a run of six straight weeks of decline, as a ceasefire between the US and Iran significantly reduced volatility and encouraged a more risk-on approach from investors. The benchmark Nifty 50 and Sensex indices had fallen over 12% in the 6 weeks before this rally.The BSE’s Sensex index ended 1.2%, or 919 points, higher at 77,550.25 points on Friday, led by gains in the banking and financial services sector. The Nifty 50 also closed 1.2%, or 276 points, higher at 24,050.60. Except for IT, all other sectors saw robust gains during the session.The India VIX, which indicates market uncertainty, dropped another 8% to its lowest level in over three weeks, implying that investors have started to finally expect some stability in the market despite the weak ceasefire.The improved sentiment is after US President Donald Trump on Wednesday announced a two-week suspension of military strikes against Iran just hours before his deadline, and Iran agreed to open the Strait of Hormuz for shipments. This led to the Nifty and Sensex jumping 4% during the session. Crude oil prices have also declined sharply this week, falling between the $95-100 per barrel range from around $115 a week ago.However, tensions have been flaring since the agreement, with many unconvinced that the ceasefire would hold.While foreign investors (FIIs) have continued to pull out money from the Indian markets, the pace has slowed as the month has gone on.On Thursday, FIIs had pulled out $144 million. The figure was around $743 million a session ago. On Friday, provisional data from the exchanges showed FIIs invested Rs 672 crore. In comparison, these players had pulled out $2.2 billion and $1 billion, respectively, in the first couple of sessions of the month. Domestic investors have also continued to remain robust, buying shares worth Rs 35,572.48 crore so far in March. Mutual funds have continued to buy equities, with inflows rising to an 8-month high in March. © The Indian Express Pvt Ltd