Guide
What Is the India VIX? The Volatility Index Explained
India VIX is a volatility index computed by the NSE. It measures the market's expectation of how much the NIFTY 50 will move over the next 30 days, derived from the prices of NIFTY options. It is quoted as an annualised percentage.
The 'fear gauge'
India VIX is often called the fear index. When investors expect turbulence, they pay more for options as insurance, which pushes the VIX up. A high VIX signals nervousness and expected large swings; a low VIX signals calm and expected small moves.
How to read it
- A rising VIX often accompanies falling markets — fear and selling go together.
- A low, stable VIX suggests complacency and range-bound expectations.
- VIX measures the size of expected moves, not their direction.
VIX and your strategy
Options traders watch the VIX because it's tied to option premiums (see option premium and beta for related volatility ideas). For index levels and history, see what a stock market index is.