The volatility index India VIX declined more than 15% on Tuesday, March 10, following hints of de-escalation in the US-Iran conflict and a drop in crude oil prices.
India VIX fell as much as 15.2% to 19.7975 during the session.
The volatility index reflects the market’s expectations of near-term fluctuations. Volatility is commonly defined as the rate and magnitude of price movements, and in financial markets it is often associated with risk.
India VIX indicates the extent to which the underlying index is expected to move in the near term. It is calculated as annualised volatility, expressed as a percentage (for example, 20%), based on the order book of options linked to the underlying index.
Despite Tuesday’s decline, volatility in Indian equities has risen sharply over the past month. The India VIX surged during this period as escalating geopolitical tensions and global uncertainty triggered heavy selling across markets.
Often referred to as the market’s “fear gauge,” India VIX has surged 74% over the past month, highlighting rising investor anxiety. The index has climbed 18% in the last week alone and 85% over the past three months.
more to come…..