India VIX
An index measuring the volatility the market expects in the Nifty over the next 30 days, derived from Nifty option prices.
Formula
Computed from the order book of near and next-month Nifty options, expressed as an annualised percentage
Unit
%
In depth
India VIX is implied volatility expressed as an index, so it tells you what options are charging for uncertainty rather than forecasting direction — a high reading means large moves are expected, not that prices will fall. It is inversely correlated with the market in practice, since demand for protection rises during declines, which is why it is loosely called a fear index. As an annualised figure it must be scaled to shorter horizons: dividing by the square root of 252 gives an approximate expected daily move. It spikes ahead of major events and collapses afterwards, which is the same volatility crush that damages option buyers.
Worked example
A VIX reading of 14 implies an expected daily move of roughly 14 / 15.87 = 0.88%. A reading of 26 implies about 1.64% — nearly double, with no statement about which direction.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “India VIX” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.