• UGI USER
  • Jun 05, 2024
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“INDIA VIX SURGES 24%: MARKET VOLATILITY SPIKES AFTER ELECTION”

Why in the news?

  • India VIX, known as the fear index, surged by 24% to close at 26.75.
  • During intraday trade, the index spiked by 51% to reach 31.71, indicating heightened market volatility.
  • This increase followed the Lok Sabha election results, which showed fewer seats than expected for the Bharatiya Janata Party (BJP).

About India VIX:

  • India VIX, launched by NSE, reflects market volatility.
  • High VIX signals expected market turbulence, influencing options pricing.
  • It shows inverse correlation with Nifty; when VIX rises, Nifty falls, and vice versa.
  • India VIX measures market expectation of volatility in the near term.
  • Higher VIX value indicates expected increase in market volatility.
  • Also known as ‘fear gauge’ or ‘fear index’.
 source:researchgate
What is the Volatility Index?

  • India Volatility Index, measures market anticipation for near-term volatility.
  • Introduced by NSE in 2003, inspired by the Chicago Board Options Exchange.
  • Provides insights into market sentiment and expected fluctuations.

About  National Stock Exchange of India Ltd(NSE):

  • NSE is India’s premier stock exchange based in Mumbai.
  • Founded in 1992, it was the first dematerialized electronic exchange in India.
  • It facilitates trading in equities, derivatives, debt, and currency.

Associated Article:

https://universalinstitutions.com/navigating-market-turbulence-understanding-india-vix-surge-impact/