India VIX Falls 4.82% to 10.52 as Oil and Global Gains Offset FII Selling

Mumbai, Sept 23: India VIX was at 10.52, down 0.53 points or 4.82%, at 10:05 IST on Wednesday, after opening at 10.99 against the previous close of 11.00. The volatility index traded between 10.47 and 11.04 during the early session, as softer crude prices and stronger global technology markets offset continued foreign selling and Middle-East uncertainty. 

India VIX Opens Higher Before Falling 4.82% to 10.52 

India VIX initially moved higher as the Indian market opened, reflecting the uncertainty carried into the session from geopolitical developments and persistent foreign outflows. The index subsequently moved lower as broader market conditions remained supported by easing oil prices and positive global equity cues. 

The Nifty 50 opened at 23,352.15, up 0.10%, at 9:06 IST and moved to 23,369.25, up 0.17%, by 9:14 IST. The previous session had ended at 23,329, after the Nifty declined 0.36% and broke a four-session winning streak. 

The early India VIX movement therefore came against a positive opening in the benchmark index, while the volatility gauge remained below its 52-week high of 28.90 and above its 52-week low of 8.72. Its year-to-date return stood at 10.97% as of 23 September. 

Brent Below $100 Eases Pressure as Iran Talks Remain Uncertain 

Crude prices remained one of the main factors influencing the opening market environment. Brent crude was around $99 per barrel, after falling below the psychologically significant $100 level amid expectations of greater Middle-East supply and possible diplomatic progress between the US and Iran. Reuters reported that Saudi Arabia had resumed operations on its East-West pipeline, while hopes of talks at the United Nations also weighed on oil prices. 

The geopolitical picture, however, remained unsettled. US President Donald Trump continued to issue strong warnings towards Iran while also indicating that discussions involving his representatives and Iranian mediators had been productive. This combination kept uncertainty around the conflict and its implications for oil supply present during the Indian opening session. 

Asian Gains and Nasdaq Records Limit Early Volatility Pressure 

Asian equities provided a positive external backdrop for Indian markets on Wednesday. The MSCI Asia-Pacific index excluding Japan was reported higher, while Asian markets were heading towards a sixth consecutive session of gains, supported partly by continued demand for technology linked to artificial intelligence applications. 

Wall Street also supplied a supportive cue. The Nasdaq Composite reached an intraday record on Tuesday, while technology stocks remained strong amid continuing optimism around artificial intelligence. The Nasdaq subsequently closed at 27,231.59, up 0.40%, while Brent settled around $99.92 in the global market session. 

These international developments formed a counterweight to the geopolitical uncertainty and the domestic pressure created by foreign capital outflows. 

FII Selling of ₹3,809.99 Crore Keeps Domestic Risk Elevated 

Foreign institutional investors remained a significant counterweight to the positive global signals. Provisional data showed foreign institutional investors sold ₹3,809.99 crore of Indian equities on Tuesday, marking their eighth selling session in the last nine trading days. Domestic institutional investors bought ₹4,120.07 crore, providing an offset to the foreign selling. 

Overseas investors had sold approximately $1.81 billion of Indian shares during September, taking their 2026 year-to-date outflows to $25.87 billion, according to data cited by Reuters. Indian benchmark indices were also down more than 3% for September at the time of the pre-market assessment. 

The persistent foreign outflows remained an important source of uncertainty as the Indian market entered Wednesday’s session, despite the more favourable global backdrop. 

GIFT Nifty Signals Caution Before Nifty Opens Higher 

The pre-market signal was comparatively subdued. GIFT Nifty was around 23,343 at 7:49 IST, pointing towards a broadly flat opening against Tuesday’s Nifty close of 23,329. Reuters reported that foreign outflows and continuing Middle-East concerns were offsetting gains across Asian markets. 

The eventual cash-market opening was firmer, with the Nifty reaching 23,352.15 at 9:06 IST. This created a gap between the cautious pre-market indication and the actual early movement in the benchmark, while India VIX subsequently declined from its opening level. 

The rupee also remained stable. It opened at approximately ₹95.57 per US dollar, compared with Tuesday’s close of ₹95.59, avoiding a fresh opening shock from the currency market. Reuters had identified oil prices as a key variable for the rupee amid the continuing Middle-East situation. 

RBI Liquidity Measures Keep Rate Uncertainty in Focus 

Domestic monetary conditions remained another background factor. The Reserve Bank of India had reduced the banking-system liquidity surplus by 55%, from ₹11.16 trillion to ₹4.92 trillion, through measures including government bond sales, foreign-exchange swaps and actions aimed at supporting the rupee. 

The changing liquidity position came alongside expectations of further monetary tightening if inflationary pressure from oil and currency movements persists. This remained a medium-term policy consideration rather than a single opening-session trigger for India VIX. 

Options Positioning Centres On 23,300 To 23,500 

The previous-session options structure placed substantial open interest around key Nifty levels. On the Call side, maximum open interest was recorded at 23,500 with 89.79 lakh contracts, followed by 23,400 with 72.22 lakh and 23,800 with 63.63 lakh. 

On the Put side, maximum open interest stood at 23,000 with 95.16 lakh contracts, followed by 23,300 with 69.23 lakh and 23,400 with 61.11 lakh. The Nifty Put-Call Ratio declined to 0.94 from 1.20. These positions placed the 23,300–23,400 area at the centre of early-session positioning, with 23,500 and 23,000 also carrying substantial open interest. 

India VIX Technical Levels Show 10.60 as Immediate Support 

The previous trading session’s range produced a Classic pivot point of 11.01, with resistance levels at 11.40, 11.81 and 12.20, while support levels stood at 10.60, 10.21 and 9.80. 

The Fibonacci levels placed support at 10.70, 10.51 and 10.21, while Camarilla calculations showed support at 10.93, 10.85 and 10.78. The technical rating was Neutral. The seasonality data also showed that India VIX had recorded negative September returns in 10 of 18 years, while September’s average change was 3.20%. 

Tata and Adani Developments Add Stock-Specific Uncertainty 

Corporate developments also remained part of the wider market backdrop. The Tata Sons–Tata Trusts dispute continued to centre on disagreements involving the reappointment of N. Chandrasekaran, the potential listing of Tata Sons and the position of the Shapoorji Pallonji Group. 

Separately, proceedings involving Adani Enterprises, Adani Green Energy, Adani Total Gas, AWL Agri Business and Adani Energy Solutions remained relevant to individual stocks following Securities and Exchange Board of India (SEBI) adjudication settlements. These developments were stock-specific rather than broad India VIX events. 

India VIX stood at 10.52, down 4.82%, at 10:05 IST, after trading between 10.47 and 11.04. The opening session combined lower crude, stronger Asian and US technology markets, stable rupee conditions, persistent FII selling and continuing Middle-East uncertainty, while Nifty options positioning remained concentrated around key levels. 

Source 

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