Biggest ever Vix jump stokes drawdown fears

Shooting Up India Vix

- KHUSHBOO TIWARI

The India Vix, also known as the fear gauge, skyrocketed 66 per cent on Monday, marking its largest single-day jump in history. The surge was driven by growing US recession concerns and their impact on corporate earnings and investment flows.

The index, which reflects market volatility based on index option prices, ended the day at 22.8—its highest level since June 2024 amid uncertainty around the Lok Sabha election results.

The latest spike in the Vix is a sign that investors are visibly rattled by global developments and fear a further drawdown in stock prices, experts said. "This sharp rise in volatility signals deep uncertainty among investors. Yet, the recovery in the final hour of trading underscores the resilience and determination of domestic market participants, who remain steadfast despite the tough conditions," said Rajesh Bhosale, technical analyst at Angel One.

The market unrest follows heightened trade tensions after US President Donald Trump imposed new tariffs, prompting retaliation from China.

Analysts have described the current market environment as "highly concerning".