Mumbai, June 18: India VIX extended its losing streak for a fifth consecutive trading session on Thursday, closing at 12.67, down 0.52 points or 3.94% from the previous close of 13.19. The volatility gauge slipped to its lowest level since 26 February 2026, reflecting a sustained decline in expected market fluctuations amid easing geopolitical concerns, softer crude oil prices and improving market conditions. 

India VIX Drops 3.94% After Hitting 11.99 Low 

India VIX opened at 13.18, marginally below its previous close of 13.19, and moved within a broad intraday range before ending the session lower. During the day, the index touched an intraday high of 13.22 and fell sharply to a low of 11.99 in early trade. 

By mid-morning, the volatility index had declined 3.12% to 12.78, while the final session reading stood at 12.67, representing a fall of 3.94% over the previous close. The index remained significantly below its 52-week high of 28.90 and comfortably above its 52-week low of 8.72. 

Technical indicators continued to signal a neutral trend, while daily pivot calculations placed resistance levels at 13.70, 14.20 and 14.88, with support levels positioned at 12.52, 11.84 and 11.34. 

Brent at $78-79 Per Barrel Pushes Volatility Lower 

The decline in India VIX coincided with a reduction in geopolitical tensions in West Asia following reports of a peace agreement between the United States and Iran. The easing of regional uncertainty was accompanied by a sharp correction in crude oil prices. 

Brent crude, which had traded above US$95 per barrel during the conflict period, declined to around US$78–79 per barrel, marking a drop of nearly 15–20% within less than two weeks. Lower crude prices reduced concerns over import costs and inflationary pressures for India, while also supporting broader stability in domestic financial markets. 

India VIX slipped below levels recorded before the start of the US-Iran conflict, indicating that expectations of near-term market volatility moderated considerably during the period. 

One-Month Decline Exceeds 35% Since Mid-May 

Data between 18 May 2026 and 18 June 2026 highlighted a sustained downtrend in the volatility gauge. 

India VIX closed at 19.63 on 18 May 2026 before declining to 18.68 on 19 May, 17.82 on 21 May, and 16.70 on 25 May. The index continued to weaken through late May, ending at 14.98 on 27 May, although it briefly rebounded to 16.19 on 29 May. 

During June, volatility remained under pressure. India VIX settled at 16.54 on 1 June, eased to 15.79 on 5 June, rose temporarily to 17.03 on 8 June, and subsequently resumed its downward movement. It closed at 15.58 on 9 June, 14.72 on 12 June, 14.35 on 15 June, 13.36 on 16 June, and 13.19 on 17 June, before ending Thursday’s session at 12.67. 

The movement reflected a decline of more than 35% from the 18 May closing level and an almost 19% reduction over the preceding week. 

Seasonality analysis also showed that India VIX has historically generated negative returns during June in 11 out of 18 years. The average decline for the month stands at 7.60%, while the largest monthly fall recorded was 43.90% in 2024. 

Fed Signals Keep Benchmarks Mixed Despite Calm 

Despite the drop in volatility expectations, domestic benchmark indices traded within a narrow range as global investors monitored the outcome of the latest meeting of the US Federal Reserve. 

The central bank kept interest rates unchanged but indicated the possibility of an additional rate increase later in 2026, as inflation in the United States remained above the 2% target. The hawkish commentary weighed on global markets and pushed the yield on the US 10-year Treasury bond to 4.46%. 

Indian equities displayed mixed trends during the session. The Nifty 50 traded near 24,050, while the Sensex remained largely unchanged. Information technology stocks faced selling pressure, with Infosys, HCL Technologies, Tech Mahindra and Tata Consultancy Services declining between 1% and 2.5%. 

Broader indices outperformed the benchmarks, with the Nifty Midcap 100 and Nifty Smallcap 100 advancing by up to 0.3%. Market breadth also remained positive, as 1,623 stocks advanced on the National Stock Exchange compared with 763 declines. Realty counters moved higher, with DLF gaining 1.97% and Lodha Developers rising 1.35%. 

June Futures Premium and Options Data Stay Firm 

Derivatives positioning indicated continued activity in index contracts. The Nifty 30 June 2026 futures contract traded at 24,144.90, representing a premium of 28.05 points over the spot level of 24,116.85. 

In the options segment, the highest call open interest was observed at the 25,000 strike price, with 93.8 lakh contracts, while the largest put open interest stood at the 24,000 strike, amounting to 65.6 lakh contracts. 

India VIX has now declined for five straight sessions since 11 June 2026, maintaining its neutral technical stance despite fluctuations in global interest rate expectations. 

India VIX ended the 18 June 2026 session at 12.67, marking its lowest closing level since late February and extending a five-session decline. Market participants may continue monitoring crude oil prices, developments in West Asia, US monetary policy signals, and changes in volatility trends, as these factors have recently coincided with movements in the volatility index and broader market conditions. 

Source 

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