Mumbai, June 19
Market fear and nervousness eased on Thursday as the India VIX -- often referred to as the 'fear index' -- dropped below the key level of 14.
This came even as investors remained cautious due to ongoing geopolitical tensions in the Middle East.
In the noon trade, the India VIX was down 2.5 per cent at 13.92. This marks a 20 per cent drop in the volatility index over the past one month -- indicating that traders are less worried about sudden market swings.
Experts said with the India VIX trading below the important 15 mark, it signals reduced volatility and reflects improving investor confidence.
This could support the current market uptrend, provided other global and domestic cues remain stable.
"The decline in the fear index suggests that investors are reacting calmly despite geopolitical concerns," they noted. It also points to strong institutional flows and better global signals contributing to the positive mood.
In the previous session, the India VIX had closed at 14.27, slightly down from 14.40, showing a steady but cautious investor sentiment.
With the latest move, markets seem to be shifting into a more stable phase, though risks still remain on the horizon.