The India VIX, sometimes called the market’s concern gauge, staged a dramatic rally on April 7, 2025, spiking 59.45 per cent intraday to the touch 21.94, the best degree since August 2024. This marks one of many steepest single-day surges within the index’s historical past and indicators rising unease amongst buyers.
What’s India VIX?
India VIX, or the Volatility Index, measures the market’s expectations of volatility over the following 30 calendar days. A rising VIX signifies that merchants anticipate bigger value swings within the close to time period — primarily, extra market turbulence forward. Conversely, a falling VIX indicators a calmer market setting.
April’s volatility surge: A post-COVID document
The April 7 surge comes on the heels of back-to-back intraday jumps — 88.50 per cent and 79.06 per cent on April 3 and a pair of respectively. Whereas the index closed decrease on these days (up 25.05 per cent and 42.23 per cent), the sharp strikes marked probably the most aggressive volatility spike within the post-COVID market cycle.
What triggered the spike?
Market sentiment has been rattled by intensifying world commerce tensions. The US Fed Chair Jerome Powell’s latest feedback, the place he held off additional fee cuts and flagged the potential financial harm from the US-led tariff escalation — added gasoline to the fireplace. With inflationary issues rising and progress forecasts beneath strain, investor anxiousness has reached fever pitch.
Historical past of India VIX
Sure — however not typically. There have solely been 4 prior situations when India VIX surged over 50 per cent in a single day:
August 24, 2015 (Black Monday): VIX jumped 64.36 per cent. It peaked the following day, then crashed 55 per cent inside a month.
August 24, 2009: VIX spiked 65.10 per cent intraday. After a quick surge, it cooled practically 60 per cent over the following month.
Could 22, 2009: A 68.63 per cent rise intraday noticed the VIX hit 87.53, however a 49.4 per cent correction adopted in 30 days.
What subsequent for markets?
Traditionally, sharp VIX spikes are likely to reverse rapidly typically inside weeks however in addition they function a purple flag for heightened volatility. Whereas this will sign a chance for contrarian buyers, it’s equally a warning: brace for potential turbulence within the days to return.
