In the current calendar year, the India VIX index has jumped fivefold, from around 12 levels to the current 67 levels, which clearly hints that the market perceives that volatility will only increase in the coming days.
About:
India VIX is an index that serves as a measure of market expectation of volatility in the near term.
While volatility signifies the rate and magnitude of change in the stock price or index value, the movement in the VIX index reflects the overall market volatility expectations over the next 30 days.
So, a spike in the VIX value means the market is expecting higher volatility in the near future.
Given the nature of the index, it is also known as ‘fear gauge’ or ‘fear index’.
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