{"id":295742,"date":"2024-05-15T17:17:15","date_gmt":"2024-05-15T11:47:15","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=295742"},"modified":"2024-05-15T18:11:03","modified_gmt":"2024-05-15T12:41:03","slug":"india-volatility-index-vix","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/india-volatility-index-vix\/","title":{"rendered":"India Volatility Index (VIX)"},"content":{"rendered":"<p><strong>Source:\u00a0 <\/strong>This post on <strong>India Volatility Index VIX<\/strong> is based on the article<strong> <a href=\"https:\/\/indianexpress.com\/article\/explained\/explained-economics\/india-vix-index-market-volatility-9327742\/\">&#8220;India VIX Index rallies: What does market volatility mean for investors?&#8221;<\/a> <\/strong>published in \u201cThe Indian Express\u201d on 14th May 2024.<\/p>\n<h2>Why in the News?<\/h2>\n<p>Recent, surge in the India VIX reflects the anticipated near-term volatility in the market.<\/p>\n<h2>About Volatility Index (VIX)<\/h2>\n<p><strong>1. About Volatility Index (VIX):<\/strong> The Volatility Index, commonly known as VIX or the<span style=\"color: #ff0000;\"> Fear Index<\/span>, measures how much volatility market players expect in the near future.<\/p>\n<p><strong>2. Role of Volatility in Finance:<\/strong> Volatility refers to the <span style=\"color: #ff0000;\">rate and extent of price changes<\/span> in the market, which is often associated with financial risk.<\/p>\n<p><strong>3. Behavior of the VIX:<\/strong> During periods when the market is highly volatile, the VIX tends to increase. Conversely, when market volatility decreases, the VIX tends to fall.<\/p>\n<p><strong>4. Calculation of the VIX:<\/strong> \u00a0The VIX is calculated based on the <span style=\"color: #ff0000;\">expected annualized volatility<\/span>, expressed in percentage terms, derived from the order book of options on a specific underlying index.<\/p>\n<h2>About India VIX<\/h2>\n<p><strong>1. About India VIX:<\/strong> The India VIX is an index that shows <span style=\"color: #ff0000;\">the expected level of volatility in the stock market over the next 30 days<\/span>. Higher numbers mean more expected volatility.<\/p>\n<p><strong>2. How It Works:<\/strong> It uses the <span style=\"color: #ff0000;\">prices of options on the NIFTY Index<\/span> to calculate expected future volatility. This is expressed as a percentage.<\/p>\n<p><strong>3. Why Is India VIX Important?<\/strong><\/p>\n<p><strong>i) Indicator of Fear:<\/strong> It is sometimes called the &#8220;<span style=\"color: #ff0000;\">Fear Index<\/span>&#8221; because it indicates how worried traders are about the market.<\/p>\n<p><strong>ii) Decision-Making:<\/strong> Investors look at the VIX to take decisions regarding investments. When the VIX is high, the market is considered riskier.<\/p>\n<p><strong>UPSC Syllabus: Indian Economy<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source:\u00a0 This post on India Volatility Index VIX is based on the article &#8220;India VIX Index rallies: What does market volatility mean for investors?&#8221; published in \u201cThe Indian Express\u201d on 14th May 2024. Why in the News? Recent, surge in the India VIX reflects the anticipated near-term volatility in the market. About Volatility Index (VIX)&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/india-volatility-index-vix\/\">Continue reading <span class=\"screen-reader-text\">India Volatility Index (VIX)<\/span><\/a><\/p>\n","protected":false},"author":10366,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127],"tags":[11872,11452],"class_list":["post-295742","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","tag-9pm-daily-factly","tag-the-indian-express","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/295742","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10366"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=295742"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/295742\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=295742"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=295742"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=295742"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}