
News Topical, Digital Desk : The India VIX, considered a gauge of investor anxiety in the Indian stock market, has fallen below 10 for the first time since 2018. The Volatility Index (VIX), also known as the "fear gauge," indicates a decline in market volatility. The Federal Reserve's rate cut, strong global cues, and the strength of the domestic market have boosted investor confidence, leading to a return to stability in the market.
Investor sentiment in the Indian equity market is steadily improving. The biggest sign of this was when the India VIX (Volatility Index) slipped below 10 for the first time since 2018.
The India VIX typically indicates the market's potential for volatility over the next 30 days. It is also known as the market's "fear gauge." This low level for the first time since 2018 indicates that investor confidence in the market is currently very strong and they are not anticipating any major shocks. Experts on CNBC Awaaz explained several reasons for the decline in the VIX. The US Federal Reserve's 25 bps rate cut has raised hopes of increased foreign investment. Global cues are strong. Strength in Asian markets and a rise in US futures supported the Indian market. Softening crude oil prices also provided support, with Brent crude nearing $68, reducing import pressure on India. India-US trade talks have eased tensions. Bilateral talks have given investors confidence that the business environment could improve. Market impact: A low VIX means the market is less likely to experience significant declines or volatility. This has directly impacted investor confidence, and the Sensex and Nifty have consistently reached new highs. The Nifty has gained 1,000 points in the last 14 sessions. Anand James of Geojit Financial Services says, "The VIX falling below 10 is historic, but investors should remain cautious. A low VIX does not mean that risk is completely eliminated." The India VIX falling below 10 for the first time since 2018 is a sign of stability in the Indian market and investor confidence. However, it is difficult to predict whether this period of low volatility will last long.
--Advertisement--