Indian markets witnessed a sharp rise in volatility on Monday, with the India VIX surging nearly 10% amid escalating geopolitical tensions, weak global cues and heavy pressure on banking stocks.
The India VIX, often referred to as the market’s “fear gauge,” climbed to 18.52, reflecting rising nervousness among traders and investors over short-term market direction.
Nifty 50 May Futures slipped to 23,952, down 1.17%, while Bank Nifty May Futures declined 1.22% to 54,840, indicating sustained weakness in benchmark indices during early trade.
Among key derivatives movers, State Bank of India May Futures fell 3.28% to 970.70. Open interest in SBI futures rose to 8.86 crore shares, with an addition of 29.57 lakh shares, signalling aggressive short buildup by traders.
The sharp spike in volatility comes amid renewed concerns over the US-Iran conflict, rising crude oil prices and fears of foreign institutional investor outflows from emerging markets.
Market sentiment also remained cautious after Prime Minister Narendra Modi called for measures to reduce fuel dependency and encouraged alternatives such as natural farming over excessive fertilizer use amid global economic uncertainty.
Broader markets also remained under pressure, with the Midcap 100 and Smallcap indices trading lower during the session, indicating risk-off sentiment across sectors.
