India VIX Falls 3.02% as Global Risks Ease in Early Session 

Mumbai, Sept 22: India VIX stood at 10.90, down 0.34 points or 3.02%, at 10:08 AM IST on Tuesday, after opening at 11.24 against the previous close of 11.25. The volatility index touched an intraday high of 11.24 and a low of 10.61, as stronger global equities, softer US Treasury yields, easing crude prices and hopes of US-Iran diplomacy shaped the early-session environment. 

India VIX Drops Below 11 as Global Cues Calm Markets 

India VIX entered Tuesday’s session from an already subdued level after falling for the fourth consecutive session on Monday. It had closed around 11.22–11.27 on 21 September, while remaining below the 12 level that had been closely watched in the preceding session. The latest reading places the index well below its 52-week high of 28.90, although it remains above its 52-week low of 8.72. Its year-to-date return stood at 15.30% as of 22 September. 

The early decline came as global markets began Tuesday on a firmer footing. The previous US session saw the Nasdaq Composite rise 2.26%, the S&P 500 gain 1.49% and the Dow Jones advance 0.71%, with the Nasdaq closing at a record high. Technology and semiconductor stocks led the move, while US Treasury yields also eased. 

Crude Stays Near $100 Despite Four-Session Decline 

Crude oil remained a key variable for India’s volatility outlook as Brent traded around $100–101 a barrel and West Texas Intermediate (WTI) remained near $96 a barrel. Brent had declined sharply over the preceding sessions and was still below last week’s peak of almost $110, although it edged higher on Tuesday. 

The earlier fall in crude followed hopes of possible diplomatic engagement between the United States and Iran during the United Nations General Assembly. Lower oil prices had reduced concerns around India’s imported energy costs, while the subsequent rebound kept the geopolitical risk surrounding energy supplies in focus. The oil market therefore remained an important counterweight to the otherwise calmer global market backdrop. 

US-Iran Talks Shift Geopolitical Risk Away from Immediate Escalation 

The possibility of discussions between US President Donald Trump and Iranian President Masoud Pezeshkian became an important global market development entering Tuesday’s session. The diplomatic possibility contributed to the earlier fall in crude prices and supported the rise in global equities. 

The development did not remove the wider West Asia risk. Oil remained above $100 a barrel, while uncertainty surrounding the conflict and regional energy supplies continued. For India’s volatility market, the distinction was important because crude had moved substantially lower from last week’s extreme levels even as geopolitical risks remained unresolved. 

Asian Markets Rise as Technology Shares Follow Wall Street 

Asian equities opened largely higher on Tuesday after the strong US session. South Korea’s Kospi, Hong Kong equities and Shanghai markets advanced, while Japan remained closed for a holiday. Technology stocks across the region followed the previous day’s gains in US artificial intelligence and semiconductor shares. 

The broader Asian move reinforced the positive global backdrop entering the Indian session. The combination of stronger US equities, higher Asian technology shares and lower Treasury yields provided a calmer opening environment for Indian markets, while the possibility of an abrupt risk-off move was not evident at the start of trading. 

GIFT Nifty Signals Positive Start Above 23,500 

GIFT Nifty indicated a positive opening for Indian equities, with different pre-market readings placing the index around 23,500–23,525, approximately 60–80 points above the previous Nifty close. This followed Monday’s domestic market advance, when the Nifty 50 rose 67.90 points or 0.29% to 23,414.30, while the Sensex gained 564.03 points or 0.76% to 74,858.99. 

The Nifty also extended its winning streak to four sessions on Monday. The domestic market therefore entered Tuesday with the index already advancing while India VIX remained near the 11 level. 

FII Selling Contrasts with Strong DII Buying 

Institutional flows provided a mixed domestic signal ahead of the early session. Foreign Institutional Investors (FIIs) sold approximately ₹576 crore on 21 September, while Domestic Institutional Investors (DIIs) bought around ₹2,800 crore. 

The contrasting flows meant foreign selling remained a source of market uncertainty, while domestic institutional purchases provided an offsetting flow. The rupee also received support from the earlier decline in crude oil, although the dollar remained relatively firm and the broader global interest-rate environment continued to be monitored. 

August Core Growth Slows to 4.8% Amid Sector Declines 

India’s latest core-sector data added a domestic macroeconomic factor to Tuesday’s market setup. Core-sector output grew 4.8% year-on-year in August 2026, compared with 5.0% in July 2026 and 6.2% in August 2025. 

The increase was led by cement at 12.5%, electricity at 11.6%, iron ore at 5.5%, steel at 3.4% and refinery products at 2.6%. However, coal, natural gas, crude oil and fertilisers recorded negative growth. Cumulative core-sector growth for April-August 2026 stood at 4.3%, compared with 2.4% during the corresponding period a year earlier. 

Fed Rate Expectations Keep Dollar and Yields in Focus 

The global rate backdrop remained a counterpoint to the easing volatility signals. The US dollar stayed relatively firm, with the Dollar Index near 100.3, while market expectations continued to include the possibility of another US rate hike. 

At the same time, the US 10-year Treasury yield declined, removing some pressure from the global bond market after recent increases. US-China trade developments also remained in focus, with expectations surrounding a potential Trump-Xi meeting and continuation of the trade truce adding to the broader global market backdrop. 

India VIX Holds Neutral Technical Rating At 10.90 

At 10.90, India VIX had a neutral daily technical rating. Its daily pivot level was 11.42, with classic resistance at 11.65, 12.06 and 12.29, while support levels stood at 11.01, 10.78 and 10.37. 

Seasonality data also shows that India VIX has delivered negative September returns in 10 of 18 years. For September, the maximum positive change recorded was 34.92% in 2018, while the maximum negative change was 26.10% in 2009. The average September change was 3.36%. 

India VIX’s 3.02% early-session decline to 10.90 reflects the opening combination of stronger global equities, softer Treasury yields, lower crude from recent highs and diplomatic hopes around US-Iran relations. Brent near $100, FII selling, rate expectations and West Asia uncertainty remain the principal factors shaping the day’s volatility backdrop. 

 Source 

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