Mumbai, July 3 -- Markets are sailing through calm waters, with the benchmark Nifty 50 rising nearly 4% in the month to date. However, an undercurrent has already started forming.

Volatility could resurface soon, as US President Donald Trump hasn't shown any signs of extending his 90-day pause on reciprocal tariffs beyond 9 July.

"Traders may start reacting as early as Friday, with increased activity in the VIX index," said Shrikant Chouhan, head of equity research at stockbroker Kotak Securities. "Unless there is a delay or reversal in the tariff decision, volatility could spike, potentially reaching levels around 19-20," he added.

The tariff pause had given markets around the world a chance to breathe easy.

In fact, India's Volatili...