<ul><li>If you have been looking at share market movements, you might have come across the term <keyword id="158701" type="General" weightage="80" keywordseo="india-vix" source="Orion">India VIX</keyword>.</li><li>India <keyword id="315980" type="General" weightage="100" keywordseo="vix" source="Orion">VIX</keyword> is used as one of the indicators by traders, especially those dealing in options, to understand how to place their bets.</li><li>But what exactly is India VIX and should you care about it?</li><li>We try to break down this concept into simpler words to help you understand what India VIX is and why it is important.</li></ul>Stock markets are volatile beasts and predicting how high or low they will go is a fool’s errand. Mostly because gauging the mentality of millions of traders is not easy. We have all heard “the stock markets are so volatile these days” or something similar, more so over the past two years. While volatility has remained elevated since the last few weeks, more often than not, the surge has been around key national and global events. <div type="image" title="India VIX 01_01_18 to 01_09_22." msid="93935605" hostid="261" caption="&amp;lt;p&amp;gt;India VIX since 2018&amp;lt;/p&amp;gt;"></div> As the chart above shows, India VIX surged multifold rapidly in March 2020 – it kept up pace with the rapid surge in Covid cases in the country, and peaked when the government announced the first nationwide lockdown. The volatility returned to its normal range several months later. By August 2020, it came back under 20, which is usually where it has remained, barring a few exceptions. But all that’s fine, what exactly is India VIX? Let’s decode it together and understand what exactly does India VIX mean and why it is important. <cmsannotation type="cmsannotation" annotationid="What is India VIX?" comment="subhead" text="What is India VIX?">What is India VIX?</cmsannotation> Simply put, VIX is short for Volatility Index. India VIX was introduced by NSE in 2003. It is based on the simple concept of how rapidly and unpredictably the Nifty 50 index is expected to change in the next 30 days. It is worth noting that volatility doesn’t just mean price falls – it’s also related to upward trends. A higher India VIX means higher unpredictability and volatility, while a lower number suggests the market trends are more predictable. In simpler terms, higher the VIX, more the fear in the market. Lower the VIX, lower the fear. <div type="Article" hostid="261" msid="93746079" title="This financial metric explains how the Indian economy will take some time before it is back on track" mstype="2" mssubtype="0"></div> <cmsannotation type="cmsannotation" annotationid="How is India VIX calculated?" comment="subhead" text="How is India VIX calculated?">How is India VIX calculated?</cmsannotation> India VIX is calculated using the Black &amp; Scholes model. It is measured using five variables of options contracts for the near and next month – these variables are strike price, market price of the stock, time to expiry, risk-free rate, and volatility. The VIX values represent the percentage change expected in the Nifty 50 index. For example, if India VIX is at 20, it means the Nifty 50 index can increase or decrease by 20% from its current level, over the next 12 months. So, if Nifty is currently at 17,500, and India VIX is at 20, it means Nifty can fall to 14,000 or rise to 21,000 from now until the next 12 months. To get a precise range for the next 30 days, use this formula: (20/√(12)) * 17,500. This gives us +/- 1,010. This means the Nifty 50 index can fall to 16,490 or increase to 18,510 in the next 30 days. <div type="Article" hostid="261" msid="93208654" title="Explained: US Fed’s rate hikes, quantitative tightening and its impact on India" mstype="2" mssubtype="0"></div> <cmsannotation type="cmsannotation" annotationid="Why is India VIX important?" comment="subhead" text="Why is India VIX important?">Why is India VIX important?</cmsannotation> India VIX helps traders understand the direction and the expected amount of change that is expected in the Nifty 50 index. This is especially useful for those dealing in futures and options. However, even a cursory look at India VIX and an understanding of the ongoing economic trends can help one get a brief idea about the market trajectory in the short term. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/spicejet-sheds-400-crore-in-value-within-an-hour-of-trading-as-cfo-quits-and-losses-mount/articleshow/93919673.cms">SpiceJet sheds ₹400 crore in value within an hour of trading as CFO quits and losses mount</a> <a href="https://www.businessinsider.in/stock-market/news/hcl-tech-beats-wipro-to-become-indias-third-largest-it-company/articleshow/93879712.cms">HCL Tech beats Wipro to become India’s third largest IT company</a> <a href="https://www.businessinsider.in/finance/banks/news/indians-love-for-travel-is-so-strong-that-its-boosting-credit-card-spends/articleshow/93859780.cms">Indians’ love for travel is so strong that it’s boosting credit card spends</a>

Explained: What is India Volatility Index or VIX, and why is it important now?

<ul><li>The <keyword id="19938957" type="General" weightage="20" keywordseo="National-Stock-Exchange" source="keywords">National Stock Exchange</keyword> (NSE) and the <keyword id="19895774" type="General" weightage="20" keywordseo="BSE" source="keywords" meta.keywordsubtype="org" meta.entityname="BSE" meta.hostid="261" meta.entityid="BSE">BSE</keyword> are conducting a special <keyword id="20255446" type="General" weightage="20" keywordseo="live-trading-session" source="keywords">live trading session</keyword> on Saturday to test their disaster recovery mechanisms.</li><li>The session split into two parts, will involve an intra-day switch from the primary site to the disaster recovery site for both equity and equity derivative segments.</li><li>Recent market trends have shown recovery over the past four days, and sentiment has improved following Phase 4 of the National Elections.</li></ul>In an important step to ensure operational resilience, the National Stock Exchange (NSE) and the BSE are conducting a special live trading session on Saturday to test their disaster recovery mechanisms. The session split into two parts, will involve an intra-day switch from the primary site to the disaster recovery site for both equity and equity derivative segments. The aim is to evaluate the participants' ability to handle disruptions and to ensure robust contingency measures are in place. Ajay Bagga, banking and market expert, commented on the session, stating, "<keyword id="19991358" type="General" weightage="20" keywordseo="Indian-markets" source="keywords">Indian markets</keyword> have a disaster recovery testing live trading day today. With India Vix declining to under 20, and FII net flows turning positive for the secondary markets on Friday, the outlook has turned slightly less cautious." The timing of this test coincides with a market holiday on Monday due to Phase 5 of the National Elections in Mumbai. Consequently, volumes are expected to be low today as institutions participate primarily to meet contingency business continuity requirements. Recent market trends have shown recovery over the past four days, and sentiment has improved following Phase 4 of the National Elections. Bagga anticipates this positive sentiment to consolidate further, with a decisive upward break likely only after the election results are announced on June 4th late evening. He said, "Indian markets have recovered over the last four days and the sentiment has improved post Phase 4 of National Elections. Expect this positive sentiment to consolidate, but a decisive break upwards, above the previous all-time high levels will happen once the election results are announced by June 4th late evening." On Friday, domestic equity benchmarks closed higher, with the Nifty 50 finishing above 22,450. The Sensex increased by 253.31 points (0.34 per cent) to close at 73,917.03, while the Nifty 50 rose 62.25 points (0.28 per cent) to 22,466.10. The Nifty 50 formed a small positive candle on the daily chart, suggesting a high wave type candle formation, indicative of a positive market sentiment as it closed above Thursday's high of 22,432. Varun Aggarwal, founder and managing director, Profit Idea, said, "The Nifty faces resistance at the 22,500 level, where significant open interest on the call side exists. A decisive break above this level is required for the index to reach its all-time high. Support is currently at 22,300, with dips viewed as buying opportunities. The index trades above its 20-day SMA and has formed a 'Piercing Line' pattern on the weekly chart, with an RSI of 62." Internationally, the markets also showed mixed trends. The Dow Jones Industrial Average closed above 40,000 for the first time, gaining 134.21 points (0.34 per cent) to reach 40,003.59. The S&amp;P 500 edged up 6.17 points (0.12 per cent) to 5,303.27, while the Nasdaq Composite fell slightly by 12.35 points (0.07 per cent) to 16,685.97. Today's special trading session is critical for ensuring the resilience and preparedness of India's financial markets. With positive FIIs and declining volatility, the outlook for the Indian markets appears cautiously optimistic, poised for a potential breakthrough following the election results. SEE ALSO:<a href="https://www.businessinsider.in/tech/mobile/webstories/motorola-edge-50-fusion-vs-oneplus-nord-ce-4-price-specs-and-features-compared/slidelist/110197390.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/webstories/motorola-edge-50-fusion-vs-oneplus-nord-ce-4-price-specs-and-features-compared/slidelist/110197390.cms" target="_blank">Motorola Edge 50 Fusion vs OnePlus Nord CE 4 – price, specs and features compared</a><a href="https://www.businessinsider.in/tech/mobile/webstories/iqoo-z9x-5g-with-120hz-display-6000mah-launched-starting-at-12999/slidelist/110176453.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/webstories/iqoo-z9x-5g-with-120hz-display-6000mah-launched-starting-at-12999/slidelist/110176453.cms" target="_blank">iQOO Z9x 5G with 120Hz display, 6000mAh launched starting at ₹12,999</a><a href="https://www.businessinsider.in/india/news/woman-loses-54-lakh-in-work-from-home-scam-heres-what-it-is-and-how-to-protect-yourself/articleshow/110166963.cms" target="_blank"></a> <a href="https://www.businessinsider.in/india/news/woman-loses-54-lakh-in-work-from-home-scam-heres-what-it-is-and-how-to-protect-yourself/articleshow/110166963.cms" target="_blank">Woman loses ₹54 lakh in work-from-home scam! Here's what it is and how to protect yourself</a>

Indian markets conduct disaster recovery test amid improved sentiment and positive FIIs

<ul><li>The <keyword id="19925636" type="General" weightage="20" keywordseo="stock-market" source="keywords">stock market</keyword> opened on a cautious note on Wednesday, with both the <keyword id="19896382" type="General" weightage="20" keywordseo="Sensex" source="keywords">Sensex</keyword> and <keyword id="19896381" type="General" weightage="20" keywordseo="Nifty" source="keywords">Nifty</keyword> starting the day in negative territory.</li><li>The subdued global handover hinted at another lackluster day for Indian markets, as investors remained cautious amid ongoing uncertainties.</li><li>The Sensex opened 192.45 points down at 73,319.40, while the Nifty started the day 68.95 points lower at 22,233.55.</li></ul>The stock market opened on a cautious note on Wednesday, with both the Sensex and Nifty starting the day in negative territory. The subdued global handover hinted at another lackluster day for Indian markets, as investors remained cautious amid ongoing uncertainties. The Sensex opened 192.45 points down at 73,319.40, while the Nifty started the day 68.95 points lower at 22,233.55. Among the Nifty firms, 16 witnessed advances while 34 faced declines in early trade. Notable gainers among the Nifty companies included Coal India, BPCL, Maruti, SBI, and Reliance, while Dr. Reddy, Asian Paints, Larsen &amp; Toubro (LT), Hindustan Unilever, and HDFC Bank were among the top losers. Commenting on the <keyword id="20977711" type="General" weightage="20" keywordseo="market-performance" source="keywords">market performance</keyword>, Ajay Bagga, banking and market expert, stated, "Muted global handover is pointing to another listless day in Indian markets. Volatility index VIX is up at a 15-month high, rising more than 40 per cent over the last month." Bagga highlighted the impact of continued Foreign Institutional Investor (FII) outflows and the lack of strong catalysts in the Indian markets, including weak IT sector outlook and provisioning overhang on lenders from the RBI. He noted the positive performance of European markets on ECB rate cut expectations for June and increasing fund flows into China. Bagga said, "The continued FII outflows are contributing to the subdued performance of the Indian markets. With the Fed rate cuts moving to the last quarter of the year, US bond yields are providing good returns for US money market funds which are seeing continued inflows even at lifetime high AUMs of USD 6 trillion plus. With a tepid earnings season, marked by a weak IT sector outlook and a provisioning overhang on the lenders from the RBI, strong catalysts are lacking for the Indian markets. Globally Europe is doing well on the back of ECB rate cut expectations for June." He added, "China seems to have bottomed and fund flows into China are increasing. We are reaching a favourable risk reward tradeoff in the Indian markets on the back of the recent negative price action. A small recovery may be on the anvil in this week itself, but the June 4th decision related volatility will limit any incipient euphoria , at least till the exit polls on June 1st. Mildly positive markets on the back of huge volatility, FII selling , positive <keyword id="20014816" type="General" weightage="20" keywordseo="global-cues" source="keywords">global cues</keyword> are expected. Leadership is moving to FMCG this week with rural demand expected to recover this year." In terms of Open Interest (OI) Data, the highest OI was noted at 22,500 followed by 22,600 strike prices on the call side, while on the put side, the highest OI is at 22,000 strike prices. Technically, the trend has weakened as the index fell below the 21-day Exponential Moving Average (EMA), with a visible Head and Shoulders pattern on the hourly chart indicating a bearish formation. Varun Aggarwal, founder and managing director, Profit Idea, said, "On the global front, Asian stocks showed mixed trends, with Japan witnessing a decline while South Korea and Australia saw gains. US stock futures remained largely unchanged. Geopolitical tensions between China and the West persisted, with the US revoking licenses allowing Huawei Technologies Co. to buy semiconductors from Qualcomm Inc. and Intel Corp." Despite these challenges, stocks worldwide have been attempting a comeback after April's decline, driven by prospects of Federal Reserve rate cuts and solid earnings. The Indian stock market opened on a cautious note, reflecting muted global cues and ongoing uncertainties. Investors are closely watching developments both domestically and internationally for further direction. SEE ALSO:<a href="https://www.businessinsider.in/stock-market/webstories/aadhar-housing-finance-ipo-price-band-to-risk-factors-all-you-need-to-know/slidelist/109919298.cms" target="_blank"></a> <a href="https://www.businessinsider.in/stock-market/webstories/aadhar-housing-finance-ipo-price-band-to-risk-factors-all-you-need-to-know/slidelist/109919298.cms" target="_blank">Aadhar Housing Finance IPO – Price band to risk factors, all you need to know</a><a href="https://www.businessinsider.in/business/auto/webstories/top-selling-cars-in-india-in-april-2024-tata-punch-continues-to-dominate/slidelist/109909744.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/auto/webstories/top-selling-cars-in-india-in-april-2024-tata-punch-continues-to-dominate/slidelist/109909744.cms" target="_blank">Top-selling cars in India in April 2024 – Tata Punch continues to dominate</a><a href="https://www.businessinsider.in/tech/news/worldwide-tablet-shipments-grow-in-q1-2024-after-two-years-of-decline/articleshow/109876390.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/news/worldwide-tablet-shipments-grow-in-q1-2024-after-two-years-of-decline/articleshow/109876390.cms" target="_blank">Worldwide tablet shipments grow in Q1 2024 after two years of decline</a>

Sensex-Nifty open in negative zone as global cues remain muted

<div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/5394f58b69beddb265a70314-800-256/macroboringyieldsroaring.jpeg" border="0" alt="macroboringyieldsroaring" />Morgan Stanley</div></div></div>
Macro Boring, Yields Roaring is the title of Morgan Stanley's latest Global Strategy Outlook, and it's pretty much the perfect encapsulation of where Wall Street sees markets going these days.
What it basically means is, the economy and the market will keep humming along, growing, rising, etc. while the recent decline in government bond yields will turn around and start to spike.
To back up for a moment, this market is essentially defined by three broad themes which can be expressed in three simple charts.
The first is the S&amp;P 500, which represents risk appetite. Stocks are at all-time highs, and though there have been a few hiccups, markets impressively push higher. An important note is that the S&amp;P 500 is just one of many markets that's been on a tear. From Europe to India, new highs are being made all over the place as investors snap up risk.
<div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/5394f6736bb3f745135372a1-1200-924/fredgraph (20).png" border="0" alt="fredgraph (20)" />FRED</div></div></div>
The next chart is the yield on the 10-year bond. Despite concerns about Fed tightening, an accelerating economy, and constant Wall Street yammering about how "interest rates have nowhere to go but up" yields remain very low, and have actually fallen so far in 2014. And again, the 10-year chart is a proxy for a story that is global: Yields everywhere have been falling aggressively, including peripheral Europe.
<div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/5394f7416bb3f726115372a1-1200-924/fredgraph (21).png" border="0" alt="fredgraph (21)" />FRED</div></div></div>
And the final chart we'll show is the VIX, which is a measure of volatility in the stock market. It's basically at all-time lows, which again mirrors a global phenomenon. Whether we're talking about interest rates or currencies, markets are incredibly un-volatile.
<div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/5394f889eab8ea8133973277-800-600/vix-3.png" border="0" alt="vix" />FRED</div></div></div>
So this is our market. Risk being bought, interest rates very low, and almost no volatility to speak of anywhere.
The outlook from Wall Street is (and Morgan Stanley is basically the most succinct at expressing it): The good times will continue to roll for awhile, but interest rates are unsustainably low and government bond yields will shoot higher as it becomes more clear that the economy is firming and the Fed will hike rates at some point.

You Searched For "india vix chart" and got 4 results

Explained: What is India Volatility Index or VIX, and why is it important now?

Rounak Jain

Indian markets conduct disaster recovery test amid improved sentiment and positive FIIs

ANI

Sensex-Nifty open in negative zone as global cues remain muted

ANI

The Wall Street Outlook In Four Words

Joe Weisenthal