Often called the market fear gauge, India’s VIX set in a dramatic rally on April 7, 2025. 59.45% inside when touching 21.94the highest level since August 2024. This is one of the steepest daily spikes in index history, marking a signal of growing anxiety among investors.
What is India VIX?
The India VIX, or Volatility Index, measures market volatility expectations over the next 30 calendar days. The rising VIX indicates that traders are predicting greater price movements in the short term. Essentially, there is more market turbulence ahead. Conversely, falling VIX shows a more milder market environment.
Volatility Surges in April: Post-Covid Records
The April 7th surge will come soon Back to back daytime jump – 88.50% and 79.06% on April 3rd and 2nd, respectively.. The index was closed at the time (up 25.05% to 42.23%), but the sudden move marked the most aggressive volatility spike in the post-Covid market cycle.
What caused the spikes?
Market sentiment is rattling by strengthening global trade tensions. A recent comment from US Federal Reserve Chairman Jerome Powell. He curbed further interest rate cuts and flagged the potential economic damages from US-led tariff escalation. Investor anxiety has reached a fever pitch as concerns about inflation rise and growth forecasts are under pressure.
Indian History
Yes – but not often. It’s just 4 previous instances When India VIX surges by more than 50% in one day:
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August 24th, 2015 (Black Monday): Vix jumped to 64.36%. It peaked the next day and crashed 55% within a month.
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August 24, 2009: Vix spiked during the day at 65.10%. After a brief surge, it cooled nearly 60% the following month.
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May 22, 2009: Aday, which is rising 68.63%, saw the VIX hit 87.53, but continued to be revised at 49.4% in 30 days.
What’s next in the market?
Historically, sharp Vix spikes tend to turn back frequently within a few weeks, but they also serve as red flags for increased volatility. This may indicate the opposite investor opportunity, but that is an equally warning: Potential turbulent braces In the next few days.
