×

UPSC Courses

DNA banner

DAILY NEWS ANALYSIS

  • 30 March, 2020

  • 3 Min Read

Volatility index

Volatility index

Part of: GS Prelims and GS-III- Econo

  • VIX (Volatility index) is an index used to measure the near term volatility expectations of the markets.
    • Volatility signifies the rate and magnitude of change in the stock price or index value.
  • The movement in the VIX index reflects the overall market volatility expectations over the next 30 days.
  • Given the nature of the index, it is also known as ‘fear gauge’ or ‘fear index’.
  • The VIX index was first created by the Chicago Board Options Exchange (CBOE) and introduced in 1993 based on the prices of S&P 500 index.

India VIX

  • The India VIX was launched by National Stock Exchange (NSE) in 2010 and is based on the computation methodology of CBOE though amended to align with the Indian markets.
  • India VIX indicates the Indian market’s volatility from the investor’s perception.
  • Volatility and the value of India VIX move parallel. i.e a spike in the VIX value means the market is expecting higher volatility in the near future and vice versa.
  • India VIX also has a strong negative correlation with Nifty. i.e every time India VIX falls, Nifty rises and when India VIX rises, Nifty falls.
  • VIX value is among the important parameters that are taken into account for pricing of options contracts, which are one of the most popular derivative instruments.

National Stock Exchange of India Ltd. (NSE)

  • NSE is the leading stock exchange of India, located in Mumbai.
  • The NSE was established in 1992 as the first dematerialized electronic exchange in the country.

Source: TH


India–Azerbaijan

A year after tensions arising from Operation Sindoor, India and Azerbaijan have taken steps to restore and normalise bilateral relations. The 6th round of Foreign Office Consultations, held in Baku, marked the first such engagement since 2022, signaling renewed diplomatic momentum. Recent Diplomatic Engagement During the consultations, bo

India–Australia Economic Cooperation and Trade Agreem

The India–Australia Economic Cooperation and Trade Agreement has completed four years since its signing. Both countries now aim to build on this progress through strengthened collaboration and ambitious targets, including reaching AUD 100 billion in bilateral trade by 2030. What is the India–Australia Economic Cooperation and Tra

ADR Report on Political Funding

A recent report by the Association for Democratic Reforms (ADR) analyses donations of ?20,000 or more declared to the Election Commission of India (ECI) by national political parties for FY 2024–25, highlighting transparency and accountability in political financing. Key Findings Massive Funding Surge Total donations to nationa

Maritime Chokepoints

Maritime chokepoints are narrow channels along global shipping routes where maritime traffic is concentrated. These points are geopolitically and economically critical, as they handle a large proportion of global trade, especially energy shipments. Current Relevance Over two-thirds of seaborne energy trade passes through a handful o

US-Israel-Iran War

Following the launch of Operation Epic Fury (U.S.) and Operation Roaring Lion (Israel), the geopolitical landscape has shifted fundamentally with the confirmed death of Iran’s Supreme Leader, Ayatollah Ali Khamenei.Iran retaliated through Operation True Promise 4, launching missile attacks against Israel and nearby Gulf states. The escala

DNA

05 Apr,2026

Toppers

Search By Date

Newsletter Subscription
SMS Alerts

Important Links

UPSC GS Mains Crash Course - RAW