What does India VIX mean?

India VIX, or the India Volatility Index, measures the market’s expectation of volatility in the near term. It is also known as the “Fear Index” as it reflects uncertainty or risk in the market.

India VIX is calculated using the Black‑Scholes Model based on NIFTY 50 out‑of‑the‑money (OTM) options. It uses bid‑ask prices of near‑term call and put options to derive implied volatility, which is expressed in annualised percentage terms.

High India VIX (above ~25) indicates high uncertainty and sharp expected price swings, often during crises or major events.

Low India VIX (below ~15) indicates stable market conditions and lower expected volatility.