India VIX falls below 14, shows market calm

Mumbai

Market nerves seem to be easing as India’s ‘fear index’ — the India VIX — fell below the key 14 mark on Thursday, signaling lower volatility and improving investor confidence.

During noon trade, the India VIX dropped 2.5% to 13.92. This reflects a 20% decline over the past month. Experts say this shows that traders are less worried about sudden market swings, despite ongoing geopolitical issues in the Middle East.

A VIX level under 15 is seen as a sign of calm in the market. Experts noted that investors are reacting steadily and not panicking, thanks to strong institutional buying and better global signals.

Even with this positive sign, caution remains. The stock market saw a small dip during the day. The Sensex dropped 37.40 points to 81,407.26, while the Nifty slipped 7.20 points to 24,804.85. These changes followed global cues and uncertainty over interest rates.

The U.S. Federal Reserve kept its interest rates unchanged, as expected. However, it hinted at fewer rate cuts than previously thought. It now projects only one quarter-point rate cut in both 2026 and 2027. Some Fed members even think there may be no rate cuts in 2025.

Despite this uncertainty, the falling India VIX suggests investors are hopeful and believe the market will stay steady — as long as global and domestic conditions don’t worsen. The current trend points to a more stable phase, though risks remain in the background.