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Source-This post on India VIX is based on the article “India VIX jumps above 16.5 amid election-led volatility; experts advise caution on leveraged positions” published in “Money Control” on 8th May 2024.
Why in the News?
India VIX has risen above 16.5 due to volatility driven by elections. In this regard, experts have recommend exercising caution with leveraged positions.
About India VIX
| Aspects | Description |
| About India VIX | 1. India VIX measures the implied volatility of Nifty 50 index options. It gauges the market’s anticipation of volatility in the near term. 2. It reflects the expected annualized volatility of the index over the next 30 days. 3. India VIX index is also known as Fear index. |
| Significance of India VIX | 1. India VIX acts as a silent yet effective indicator for assessing the range play of the index. 2. By understanding India VIX, investors can gain insights into the expected movement of share prices. |
| Calculation | The NSE calculates India VIX from the order book of NIFTY options. |
| Current Status | As of the latest data available (May 3, 2024), India VIX indicates the expected market volatility over the next 30 calendar days |
UPSC Syllabus: Indian Economy
