India VIX Falls 7.4% as Oil Prices Ease, Global Rate Hikes Shape Market Volatility

Mumbai, Sept 18: India VIX, the volatility index tracking expected fluctuations in the Nifty 50, closed at 11.39 on Friday, down 0.91 points or 7.4% from its previous close of 12.29. The index traded between 11.30 and 12.29 during the session, as easing crude oil prices and a positive opening in Indian equities coincided with global interest-rate developments and sector-specific weakness. 

The closing move came against a backdrop of continued National Stock Exchange of India (NSE) IPO bidding, a US Federal Reserve rate hike and a Bank of Japan policy decision. While these developments shaped the day’s market environment, the available information does not establish the precise contribution of each factor to India VIX’s decline. 

India VIX Closes at 11.39 After 7.4% Fall as Volatility Eases 

India VIX ended Friday’s session at 11.39, compared with its previous close of 12.29. The index opened at 12.29 and recorded an intraday high of 12.29, before moving to a low of 11.30. The closing level was therefore 0.91 points below the previous session’s close. 

The index’s 52-week range stood between 8.72 and 28.90, placing Friday’s close within its established yearly trading range. India VIX measures expected volatility in the Nifty 50 over the coming 30 calendar days, using Nifty options prices. It is not a direct measure of whether the Nifty rises or falls. 

The opening-session report available earlier in the day showed India VIX at 12.29, with an early low of 12.05 and an early high of 12.29. The subsequent market data recorded the full-day range and closing value. 

Positive Indian Markets and Lower Oil Prices Set the Tone 

Indian equities began Friday’s session on a positive note, with the Nifty 50 and Sensex both gaining in early trade. The Nifty 50 was reported up approximately 0.14%, while the Sensex advanced around 0.13%. Mid-cap and small-cap indices also recorded gains during the session. 

The opening market performance coincided with a decline in crude oil prices. Brent crude was reported around $103.50 in market coverage, while a separate energy report described the price at $102.68 during the day. The reports attributed the decline to easing concerns over Saudi supply disruptions, the restoration of some pipeline capacity and alternative crude-loading routes. 

India is a major crude oil importer, making oil prices relevant to concerns around the import bill, inflation and corporate costs. The easing in crude prices formed part of the broader market backdrop on Friday, alongside the positive opening in domestic equities. 

However, the available information does not establish that these developments independently caused the 7.4% decline in India VIX. The index’s movement reflects changes in expected Nifty volatility derived from options prices. 

Fed Raises Rates 25 Basis Points as Global Risks Persist 

The US Federal Reserve raised its policy rate by 25 basis points to a range of 3.75%–4.00%. The decision was announced on 17 September US time, making it an overnight global development for Indian markets on Friday. 

The rate hike was reported as the first increase in three years and was accompanied by a hawkish policy outlook. The development remained relevant to global financial conditions, including interest rates, currency markets and equity valuations. 

Higher US interest rates can influence global bond yields and the dollar, while changes in monetary policy can affect the broader market environment. The available reports also indicated that US stock futures were higher, creating a mixed global backdrop in which the rate decision and positive equity-market sentiment occurred together. 

The Federal Reserve announcement was therefore a significant overnight event entering Friday’s Indian session. However, the available evidence does not establish that the rate hike caused India VIX to rise or fall by a specific amount during the day. 

Bank Of Japan Raises Rates to 1.25% Amid Currency Moves 

The Bank of Japan raised its policy rate by 25 basis points to 1.25% on Friday, according to the supplied reports. The decision marked a 31-year high and introduced another major central-bank development into the global market environment. 

The policy move was accompanied by currency-market movements, with the yen reported to have weakened sharply despite the rate increase. Japanese monetary tightening can influence global liquidity conditions and currency markets, including the attractiveness of yen-funded investments. 

Asian equities were broadly positive during the session. The Nikkei 225 gained 1.4%, while the Kospi advanced 2.7%, according to the supplied market coverage. The previous US market rally and easing oil prices were also cited in the broader Asian market context. 

The BOJ decision added to the day’s global monetary-policy developments. However, the supplied information does not quantify its specific effect on India VIX’s closing level of 11.39. 

NSE IPO Bidding Continues with ₹22,562 Crore Issue 

The National Stock Exchange of India IPO continued its second day of bidding on Friday, with the issue size reported at approximately ₹22,562 crore. 

The IPO was identified in the opening-session report as one of the developments accompanying the early decline in India VIX. The issue continued to draw attention during the Indian market session, alongside the broader movement in equities and volatility. 

The available information does not quantify the amount of IPO-related funds blocked during the session or establish how much the ongoing bidding contributed to the index’s closing movement. The IPO was a concurrent market development rather than a confirmed standalone cause of the decline. 

Tata Stocks and IT Weakness Offset Broader Market Gains 

Friday’s positive opening in Indian equities was accompanied by weakness in several Tata Group stocks and the information technology sector. The supplied reports identified declines in TCS, Tata Motors Passenger Vehicles, Tata Investment and Tata Chemicals. The Nifty IT index was also reported down approximately 1.4% in market coverage. 

The Financial Express report separately identified Tata Chemicals, Tata Investment and TCS among notable decliners during midday trading. 

These stock-specific and sector-level movements occurred alongside gains in the broader Indian market. As India VIX is derived from Nifty options prices, the relationship between individual stock movements and the index depends on their effect on expected Nifty volatility. 

The available information does not provide a measured contribution from Tata stocks or the IT sector to the final India VIX decline. 

Oil Supply Risks Remain Despite Brent Falling Below $104 

Middle East geopolitical developments remained part of the global market backdrop on Friday. The supplied reports referred to concerns over Saudi supply disruptions, including pipeline damage and geopolitical tensions involving Iran-backed Houthi forces. 

At the same time, crude oil prices eased as concerns over supply disruption reduced. This created a mixed energy-market environment: unresolved geopolitical developments remained present, while the reported decline in Brent reduced the immediate oil-price pressure described in the coverage. 

Brent remained above $100 per barrel, with the supplied reports citing levels around $103.50 and $102.68. The energy-market developments formed part of the factors surrounding Friday’s trading session. 

The available information does not establish that the geopolitical developments or the movement in crude oil independently determined India VIX’s closing value. 

European Markets And US Futures Add To Mixed Global Picture 

Global equity-market signals were mixed on Friday. Asian markets were broadly positive, while US futures indicated modest gains. The supplied reports also noted that European stocks were lower. 

Alongside these equity-market developments, higher global interest rates remained a concern and crude oil prices continued to trade above $100 despite the day’s decline. 

The combination of positive Asian equities, higher global rates, oil-price movements and geopolitical uncertainty shaped the international market environment during the Indian session. However, the available information does not provide a quantified link between each of these developments and the 7.4% fall in India VIX. 

India VIX Tracks 30-Day Nifty Volatility Through Options 

India VIX is calculated using Nifty options prices to measure expected volatility over the next 30 calendar days. Its movement reflects changes in the volatility implied by those options. 

On Friday, the index opened at 12.29 and closed at 11.39, with an intraday range of 11.30–12.29. The decline took place as Indian equities opened higher, crude oil prices eased and global monetary-policy developments continued to shape the market backdrop. 

The available information does not establish the precise weight of domestic equities, oil prices, IPO bidding, central-bank decisions or geopolitical developments in the final index movement. 

India VIX closed at 11.39 on 18 September 2026, down 7.4%, after trading between 11.30 and 12.29. Friday’s market environment included positive Indian equities, lower crude oil prices, continued NSE IPO bidding and global rate decisions. The supplied information does not quantify each factor’s individual contribution to the closing movement. 

Source 

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