INDIA VIX, where is this going?

Where has INDIA VIX gone?. Alas! In 21. This means that our stock market is undergoing a major change. The India Volatility Index or INDIA VIX is the market's fear gauge. This is an index created in 2014.

The volatility of our market has increased dramatically in the past year. The change in INDIA VIX in a year is 121%. This index has risen by more than 21% on Wednesday after Holi. A 60% rise in the last three days. West Asian conflict

Do you need a better example of how terrified the market is of being overwhelmed?

9 - 12 range. That is what experts see as the floor level of INDIA VIX. 12-15 is normal. But what if it crosses I5?. Unusual. Even if there are big fluctuations in the coming month, it can be interpreted at this point that the market has discounted it.

Geopolitics has been in turmoil. There is no good news from India to overcome it. Ajit Mishra, Vice President, Research, Religare, says that the sharp rise in INDIA VIX should be seen as a warning to investors. If the Israel-Iran war intensifies, crude prices will increase. The price hike that it will cause all over the world. That concern is haunting everyone, Mishra says.

Aditya Thukral, chief analyst at AT Research and Risk Managers, says that the increase in option premiums in futures is due to the increase in risk. Whether it is a call or a put, you have to pay more premium. The INDIA VIX note option premium also increases. That is the situation. He said that the situation is similar to the increase in premiums in insurance when the risk increases.

How much longer? No one can give an answer. If the price of crude increases by one dollar per barrel, India's import costs will increase by Rs 16,000 crore. If the conflict continues, it will cause us harm. Every investor should be vigilant in that memory.

Investment decisions should be made only in consultation with SEBI approved analysts. This note is intended for investment awareness purposes only.