The India Volatility Index (India Vix) has lately hit the new all time low from the time of its start. On Aug 18th, 2010 India Vix has hit a new low of 16.40 which is even lower than the half of the year’s high of 34.37 on 25th may 2010. This may be a good news for retail investors as the volatility in the indian share market has subsided which indicated lower fear level among the investors and which may also trigger fresh foreign investments into india. Volatility index, popularly also known as the fear index, predicts the possibility of sharp movement in the stock market. The lower value of 16.40 indicates lower probability of some major swing in the stock market.

India Vix hit new low

India Vix hit new low in august 2010

India Vix was started by national stock exchange (NSE) in March 2009 and it has quoted the highest value of 56.07 on 19th may 2009 and the lowest value of 16.40 on Aug 18th 2010, thus, dropping almost 3 times in this period. NSE is also planning to launch derivatives (futures and options) on this index soon. More about it here.

Further Readings

India Vix Basics

India Volatility Index Calculations

How India Vix is related to Nifty Options

Future of India Vix Futures


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