VIX India today: The volatility index of India, or VIX India, came close to the 52-week low of 9.40 last week, when it made an intraday low of 9.44 on Friday. However, the India VIX finished at 9.52 after hitting its low on Friday. Despite tepid performance by the Nifty 50 and Sensex-listed stocks, VIX India slipped over 34% in YTD, which is quite surprising for various market observers.
According to stock market experts, market participants are pricing in stability rather than sharp directional moves in the near term. Such low readings typically occur when markets are trading within a controlled range, and uncertainty surrounding macroeconomic, earnings, or global triggers is limited. They said that nosediving India VIX signals that Dalal Street investors are least bothered by the tepid returns given by flagship Indian stocks listed at the Nifty 50, Sensex and Bank Nifty index.
What does VIX India mean for the Indian stock market?
Decoding the sharp decline in VIX India in December 2025, Prashanth Tapse, Senior VP (Research) at Mehta Equities, said, “The sharp decline in India VIX in December reflects that the market is trying to price in near-term stability and low uncertainty of any big event. So, the fall is driven by the absence of major domestic or global risk events.”
On what does this India VIX share price fall signal about the investors’ sentiments, Avinash Gorakshkar, a SEBI-registered fundamental equity analyst, said, “This fall in the India VIX can be attributed to the series of measures that enabled DIIs to take on the FIIs, who have remained net sellers since July 2025. Those measures include GST reforms, raising FDI in the insurance sector up to 100%, SEBI cutting mutual fund fees, etc. So, stock investors in India, especially DIIs and retail investors, have contributed with their conviction and faith in the Indian stock market, even when their portfolios were delivering a tepid return. This continued faith of DIIs and retail investors has led to this fall in the VIX India index, which is praiseworthy.” He said that VIX India today also reflects that the market is not anticipating any wild swings in the near term.
VIX India: Will this fall continue after the Bank of Japan’s rate hike?
On whether this fall will continue after the Bank of Japan’s decision to raise interest rates, Gorakshkar said, “The Bank of Japan has increased interest rates, which is historic. It would put the US Dollar under pressure, which may trigger FIIs’ buying, who have remained net sellers in the Indian stock market since July 2025. So, I won’t be surprised if the VIX India index hits a new 52-week low.”
Does a fall in VIX India mean a lack of trigger?
Connecting the VIX India hitting a record low with the investors’ sentiment, Ajit Mishra, SVP of Research at Religare Broking, said, “VIX India hitting a record low or oscillating around a record low indicates that the market is somewhat clueless and lacks any significant trigger. One reason for this could be that the India VIX is at record lows, indicating that the market is not pricing in any major event, at least over the next 30 days.”
“At present, traders are keeping positions light. Even options premiums have softened, reflecting the fact that traders are not expecting any major or wild swings at this juncture. This is also one of the reasons why the VIX is trading lower,” said Mishra.
The 9–12 range, as experts say, is the lower band, while the normal range for India VIX is around 12 to 15. In a typical scenario, when the market has sufficient triggers to move either upward or downward, although not necessarily with extreme volatility, the VIX tends to hover within this range of 12 to 15.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
