India VIX Falls 2.93% as Softer Oil and Global Cues Ease Volatility

Mumbai, Sept 22: India VIX ended the 22 September 2026 trading session at 10.93, down 0.33 points or 2.93%, after moving between an intraday low of 10.61 and a high of 11.41. The volatility gauge opened at 11.24, compared with the previous close of 11.25, as softer crude prices, lower US Treasury yields and positive global equity cues initially reduced volatility. The subsequent decline in Indian IT stocks and continued foreign selling limited the fall from the day’s high. 

India VIX Drops 2.93% as Volatility Eases From 11.25 

India VIX, which reflects expected volatility in the Nifty over the near term, remained below the previous close through most of the session despite a recovery from its early low. The index touched 10.61 during the day before moving higher and closing at 10.93. Its 52-week range remained 8.72 to 28.90, while its year-to-date return stood at 15.30%. 

The day’s movement followed a mixed domestic market. The Nifty 50 initially gained as global cues improved, but subsequently slipped as selling emerged in IT stocks. The benchmark moved from an early high of 23,489 to around 23,370 during the morning session. 

Lower Oil and US Yields Push India VIX Towards 10.61 

The initial decline in India VIX came as crude prices and US Treasury yields provided a more supportive backdrop for Indian equities. Brent crude remained above $100 a barrel, but had eased over the preceding sessions, reducing immediate pressure on India’s import bill and inflation outlook. The decline in US Treasury yields also supported the broader global equity environment. 

Wall Street and Asian markets added to the positive opening cues. Indian equities opened higher, with the Nifty gaining 0.18% to 23,456.25 and the BSE Sensex rising 0.15% to 74,968.68 in early trade. Small-cap and mid-cap indices also recorded gains of around 0.3%. 

This combination coincided with India VIX moving towards its intraday low of 10.61, indicating that the initial session was characterised by lower expected market volatility. 

US-Iran Talks Keep Oil Risk in Focus at $100 

Geopolitical developments remained another factor shaping the day’s volatility. The United States and Iran had exchanged threats on Sunday, while US President Donald Trump indicated that he was open to meeting Iranian President Masoud Pezeshkian during the United Nations General Assembly in New York. 

The possibility of discussions provided a counterpoint to the continuing geopolitical tensions. Any progress towards talks was linked to expectations of reduced concerns over oil supply, while renewed escalation remained a source of uncertainty for crude prices and inflation. Brent, however, remained above $100 a barrel, meaning the oil-related risk had not disappeared. 

IT Selling Reverses Early Gains and Lifts Volatility 

The positive opening in Indian equities did not continue through the morning. Selling pressure emerged in IT stocks, pulling the broader indices lower and limiting the decline in India VIX. 

The Nifty IT index was down 1.07% at 28,523.8 at around 9:31 IST and remained lower later in the morning. HCL Technologies declined 1.74%, Tech Mahindra fell 1.51% and Infosys dropped 1.48% in the mid-morning trade. The Nifty subsequently slipped to around 23,370, while the Sensex also moved into negative territory. 

The IT-sector weakness followed concerns around demand conditions and the earnings outlook. Analysts had flagged subdued demand and risks linked to geopolitical conditions, higher rates and inflation. This created a domestic source of market uncertainty even as global indicators remained comparatively supportive. 

Rupee Holds Near ₹95.80 as Oil and Dollar Demand Persist 

Currency movements provided a mixed backdrop during the session. The rupee initially strengthened to around ₹95.66 per US dollar before giving up most of those gains. It was trading near ₹95.8050 against the dollar later in the day. 

Pressure on the currency came from increased corporate dollar demand, elevated hedging activity and higher import costs. State-owned banks sold dollars around the ₹95.75-₹95.85 range, while the Reserve Bank of India was reported to have intervened to contain pressure. The rupee therefore remained relatively stable without removing the underlying currency and oil-related risks. 

Foreign Selling Adds Pressure While Domestic Buying Absorbs Flows 

Foreign institutional activity remained another factor in the market backdrop. Foreign Institutional Investors were net sellers of ₹576.20 crore on 21 September, while Domestic Institutional Investors were net buyers of ₹2,797.27 crore. The figures represented the latest available institutional-flow data entering the 22 September session. 

The contrasting flows provided an important backdrop to the day’s equity movement. Domestic institutional purchases were substantially higher than foreign sales in the reported session, while foreign selling continued to remain part of the market’s near-term trading environment. 

NSE IPO Refunds Add Liquidity as VIX Closes at 10.93 

The completion of the National Stock Exchange of India IPO also featured in the domestic market backdrop on 22 September. Refunds following the issue were expected to return funds towards the secondary market, adding liquidity after the IPO process. 

The broader market nevertheless remained uneven. At around 10:31 IST, the Nifty 50 was at 23,423.85, while the Nifty IT index was down 1.11%. Mid-cap and broader market indices remained comparatively resilient, showing that the weakness was concentrated rather than uniform across the market. 

India VIX Ends Below 11 After a Mixed Session 

By the close, India VIX stood at 10.93, down 2.93%, after spending the session between 10.61 and 11.41. The final level remained below the previous close of 11.25, but above the day’s low as domestic equity-specific pressure emerged following the positive opening. 

The session therefore combined two distinct forces: softer oil, lower US yields, positive overseas markets and possible US-Iran engagement supported lower volatility, while IT-sector selling, foreign fund outflows, currency pressure and continuing geopolitical risks prevented a sustained move towards the intraday low. The index’s technical rating remained Neutral, with the day’s pivot point at 11.42 and support levels at 11.01, 10.78 and 10.37. 

India VIX closed at 10.93, down 2.93%, after touching 10.61 during the session. Softer oil, lower US yields and positive global cues supported the early decline, while IT selling, foreign outflows, rupee pressure and geopolitical uncertainty shaped the subsequent recovery from the day’s low.  

Source 

• https://www.nseindia.com/reports-indices-historical-vix