India’s market fear gauge, the Nifty VIX, skyrocketed by 52.44% to 20.97 at 9:50 am on Monday, April 7, indicating a sharp rise in market volatility amid a global equity sell-off and fears of a fresh tariff war between the US and China. This marks one of the biggest single-day percentage gains for the volatility index in recent times.
The surge in VIX coincided with a massive rout in benchmark indices. The Sensex plummeted 2,752.31 points (-3.65%) to 72,612.38, while the Nifty 50 dropped 894.85 points (-3.91%) to 22,009.60 at the same time. A sharp spike in volatility is typically associated with investor panic or uncertainty and reflects the elevated nervousness gripping markets.
The surge in VIX comes in the backdrop of heightened geopolitical tensions, rising crude prices, and escalating trade concerns, especially after reports of China imposing a 34% tariff on all US imports starting April 10, in retaliation to proposed US tariffs on critical goods. Global equities have taken a hit, with Asian markets and US futures also trading deep in the red.
With VIX nearing the psychological mark of 21, traders and investors are expected to remain cautious, as wild swings and elevated risk premiums are likely to persist in the near term.
Disclaimer: The above views are of the market movement and not of the author or the publication. Please make any and every investment decision after consulting your financial advisor.
