India VIX Falls 4.71% as Fed Rate Hike, Crude Oil Prices and NSE IPO Shape Market Opening

Mumbai, Sept 17: The India VIX dropped by 0.62 points or 4.71% to 12.55 at 10:04 IST on Thursday, after opening at 13.16 compared to the previous close of 13.17. The volatility index touched a session low of 12.53. Indian equities began the day lower, pressured by the US Federal Reserve’s decision to raise rates by 25 basis points, rising crude oil prices, depreciation in the rupee and the opening of the ₹22,561.57-crore NSE IPO. 

India VIX Drops to 12.55 as Nifty Opens Nearly Flat 

India VIX traded between 12.53 and 13.16 during the reported early session, with the index down 4.71% at 10:04 IST. Its previous close was 13.17, while the 52-week range stood at 8.72–28.90. 

The movement came as the domestic equity market began Thursday’s session on a subdued note. The Nifty 50 opened at 23,212.10, down 5.50 points or 0.02%, while the Sensex opened at 74,264.40, lower by 72.05 points or 0.10%.  

The opening followed a session in which global monetary policy, crude oil and currency movements remained central to market conditions. The Federal Reserve’s decision to raise rates, coupled with expectations of further tightening, set the tone for the opening of Indian equities. 

Fed Hike of 25 Basis Points Adds Pressure to Markets 

The US Federal Reserve raised interest rates by 25 basis points in its latest decision, marking its first rate increase in more than three years. The decision was accompanied by projections indicating that 16 of 18 policymakers expected at least one additional 25-basis-point increase by the end of the year.  

The higher US interest-rate outlook weighed on global equity markets and contributed to the cautious start in India. US equities declined following the decision, while the US 10-year Treasury yield moved above 5%, adding to the pressure across global financial markets.  

The rate decision also strengthened the dollar, creating additional pressure on emerging-market currencies, including the Indian rupee. 

Rupee at ₹95.95 as Dollar Strength Follows Fed Decision 

The Indian rupee stood at ₹95.95 per US dollar during the opening-session coverage, keeping the currency market in focus after the Federal Reserve’s rate increase. 

The dollar index strengthened following the Fed decision, while the rupee remained close to the ₹96 level. On Wednesday, the rupee had slipped to ₹95.97 before dollar sales by the Reserve Bank of India helped it close unchanged at ₹95.95.  

The combination of a stronger US dollar and elevated oil prices kept pressure on the Indian currency as domestic markets began Thursday’s trading session. 

Brent Crude Near $106 Keeps Oil Supply Risks Elevated 

Brent crude remained close to $106 per barrel despite easing slightly in early trade. Another opening-market reading placed Brent at $105.06 per barrel. 

The decline in crude prices followed reports that Saudi Arabia had offered additional oil cargoes through Oman, helping ease some concerns over immediate supply disruptions. However, continuing restrictions and geopolitical tensions around the Strait of Hormuz kept supply risks in focus.  

For Indian markets, crude oil remained an important opening-session factor because higher oil prices can raise import costs and add pressure to the rupee and inflation outlook. The combination of elevated crude and currency pressure therefore remained part of the market backdrop as India VIX moved lower. 

NSE IPO Opens at ₹1,700–₹1,785 Amid Market Weakness 

The National Stock Exchange of India IPO opened for subscription on Thursday, adding a major domestic primary-market event to the opening session. 

The IPO has an issue size of ₹22,561.57 crore and a price band of ₹1,700–₹1,785 per share. The issue is entirely an Offer for Sale (OFS) comprising 12,64,36,650 shares, meaning existing shareholders are offering their holdings and NSE itself will not receive proceeds from the sale.  

The issue will remain open until 21 September 2026, with the shares scheduled to list on the BSE on 24 September 2026. The lot size is 8 shares, requiring ₹14,280 at the upper end of the price band for one lot.  

The opening of the NSE IPO placed a sizeable primary-market transaction alongside the Fed decision, crude oil movement and currency pressure in Thursday’s market narrative. 

IT Index Falls 0.5% As US Demand Concerns Weigh 

The information technology sector declined around 0.5% in early trade as higher US interest rates raised concerns about demand and spending on software services. Indian IT companies derive a significant portion of their revenue from the US market, linking the sector’s opening performance closely with developments in the American economy.  

The weakness in IT stocks contributed to the subdued tone across the domestic equity market, with eight of 16 major sectors recording losses at the open. The broader small-cap and mid-cap indices, meanwhile, were largely flat.  

FII Selling of ₹2,032.61 Crore Adds to Recent Market Context 

Foreign institutional investors (FIIs) were net sellers of Indian equities worth ₹2,032.61 crore on 16 September, while domestic institutional investors (DIIs) were net buyers worth ₹3,908.23 crore. 

These flows were recorded in the previous trading session and formed part of the market backdrop entering Thursday. The domestic institutional purchases provided a counterpoint to foreign selling after the Sensex and Nifty had gained 0.45% and 0.43%, respectively, on Wednesday.  

The latest institutional-flow data therefore came into Thursday’s opening alongside the Federal Reserve decision, crude oil movement and the NSE IPO. 

India VIX Technical Levels Show 12.48 as Key Support 

India VIX’s daily technical rating was Neutral in the supplied data. The classic pivot point stood at 13.20, with resistance levels at 13.55, 13.92 and 14.27, while support levels were 12.83, 12.48 and 12.11. 

Under the Fibonacci method, the pivot was 13.20, with resistance at 13.48, 13.65 and 13.92, and support at 12.93, 12.76 and 12.48. The Camarilla method placed resistance at 13.24, 13.30 and 13.37, with support at 13.10, 13.04 and 12.97. 

The technical levels were calculated from the previous trading day’s range and provide the reported reference points for Thursday’s session. 

September India VIX Positive In 9 of 18 Years 

Historical seasonality data showed that India VIX delivered positive returns in 9 out of 18 years during September. The maximum positive monthly change was 34.92% in 2018, while the average positive change was 18.29%. 

On the downside, the maximum negative change was -26.10% in 2009, with an average negative change of -9.93%. The average September change across the period was 4.18%. These historical figures form the September seasonality record accompanying Thursday’s India VIX movement. 

India VIX stood at 12.55, down 4.71%, at 10:04 IST, as the Indian market opened against a backdrop of the Fed’s 25-basis-point rate hike, Brent crude near $106, the rupee at ₹95.95, a weaker IT index and the ₹22,561.57-crore NSE IPO opening for subscription. 

Source 

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