The VIX Index, also known as the “Fear Index” is a measure of the market’s expectation of near-term volatility. The VIX is a popular measure of market risk and is often used as a barometer for fear in the markets.
Developed by the Chicago Board Options Exchange (CBOE), the VIX Index has become a widely followed indicator of market sentiment and volatility.
What is the VIX Index?
The VIX Index is calculated using the prices of options on the major Indices, like NIFTY 50 or S&P 500.
A high VIX reading indicates that the market is expecting high volatility, while a low VIX reading indicates that the market is expecting low volatility.
Indian VIX Statistics.
The India VIX provides a measure of expected volatility for the Nifty 50 Index, which is the most widely followed stock market index in India.
In recent years, the India VIX has become an important tool for traders and investors in India. According to data from the National Stock Exchange of India (NSE), the India VIX has had a median value of around 17, with a range of approximately 10 to 50.
In general, the India VIX has shown a positive correlation with market volatility, with higher readings of the India VIX coinciding with increased market volatility.