What is India VIX and how It Works?

The India VIX, or India Volatility Index, is a measure of the expected volatility in the Indian stock market over the next 30 days. It reflects investor sentiment and market uncertainty, often referred to as the “fear gauge” of the market. 

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It estimates the expected volatility by considering the bid-ask prices of near- and mid-month Nifty option contracts that are out-of-the-money (OTM). 

The value of India VIX is expressed in percentage points. For example, if the India VIX is at 20, it suggests an expected annualized change of 20% in the Nifty 50 index over the next 30 days. 

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Investors use the India VIX to gauge market risk and adjust their investment strategies accordingly.  

The India VIX is a crucial tool for investors and traders to understand market sentiment and expected volatility. 

This research serves educational and informational purposes only. It is not to be considered as a portfolio management service, basket recommendation, or investment advisory. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. 

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