India VIX Posts 0.6% Weekly Rise to 15.79 on Iran Oil Market Shock and RBI Monetary Policy Decisions; Index Fluctuates from 13.46 to 16.37 Within the Week 

Mumbai, June 6: India VIX – the country’s volatility barometer – rose by a mere 0.6% for the week of and ended the week on a note of 15.79, following an intra-week move where the fear barometer fell sharply from its weekly high of 16.9175 to its weekly low of 13.46. This measure of expected volatility in Nifty 50 within 30 days was largely triggered by increasing hostilities between Iran and the US, oil prices breaking the $99 barrier per barrel, continued foreign institutional investors (FIIs) net outflow and also the announcement of the RBI monetary policy on 5 June 2026. 

VIX Rises 2.19% to 16.54 on US Military Strikes Against Iran and FII Sell-offs 

In its opening trading of the month, the India VIX started at 16.1850, hit a weekly high of 16.9175, and ended at 16.5400, registering an increase of 2.19%. (0.3600 points) The reason for the increase was yet another episode of military strikes between the US and Iran on oil that caused crude oil to go above $95 per barrel.  

The foreign institutional investors made redemptions worth ₹3,911 crore from the Indian equity markets, while the Sensex fell more than 1,150 points. The market participants hedged heavily in the Nifty options, thus directly elevating the VIX, which is calculated based on the best bid-ask quotes for near-term Nifty option contracts. 

VIX Crashes 7.15% to 15.36 as IT Stocks Rally and Ceasefire Hopes Emerge 

Volatility collapsed in the next session. The India VIX opened at 16.5425 but plunged 7.15% (‑1.1800 points) to close at 15.3600. The sharp decline followed tentative diplomatic signals of a potential ceasefire in the Middle East and a strong rally in IT stocks.  

Also Read: What is India VIX Index?

The Nifty IT index surged over 4% , led by TCS (up over 6%) and Infosys (up nearly 6%), helping the Nifty 50 gain 101 points (0.43%) to close at 23,484.00. Traders unwound some of their protective option positions as the immediate risk of a wider conflict appeared to recede, even though FIIs remained net sellers (₹8,363 crore) for the session. The VIX’s intra‑day low of 15.1150 reflected a sharp drop in implied volatility. 

VIX Rallies 6.02% to 16.28 as Crude Hits $99 and Rupee Weakens to 95.64 

Volatility returned forcefully mid‑week. The India VIX opened at 15.3550, surged to an intra‑day high of 16.9800, and closed at 16.2800 – a gain of 6.02% (0.9300 points). The trigger was a $2.81 (2.93%) jump in Brent crude to $98.81 a barrel – the highest level in two months – after US‑Iran ceasefire negotiations stalled and Hezbollah rejected a proposed Lebanon truce.  

The rupee weakened to 95.64 per dollar, intensifying hedging demand in index derivatives. The Sensex opened 900 points lower and crashed to 73,493 during the day, while the Nifty slipped below 23,151. The VIX briefly crossed 16.62 and touched 16.44 in intra‑day trade, reflecting a sharp repricing of near‑term risk. 

VIX Declines 2.38% To 15.89 Amid Weekly Expiry Cap Ahead Of RBI Policy 

On the penultimate trading day, the India VIX opened at 16.2775 and traded in a narrower range, settling at 15.8900 – a decline of 2.38% (‑0.3900 points). The lower close came despite a mid‑session rise of 1.84% to 15.98, as weekly BSE F&O expiry‑related positioning capped aggressive volatility bets ahead of the RBI’s policy announcement the following day.  

The index’s intra‑day range was 15.5300 to 16.4050, with investors largely staying on the sidelines. The 10‑year benchmark bond yield eased to 7.000% , providing some stability, while FIIs continued to sell, pulling out ₹4,447 crore during the session. 

VIX Tumbles to 13.46 Then Surges to 16.37 Before RBI Policy Eases Hedging 

The most volatile session occurred on Friday, 5 June. The India VIX opened at 13.46 – the lowest level of the week – signalling subdued volatility expectations as markets awaited the RBI’s Monetary Policy Committee (MPC) decision. However, the index surged sharply to an intra‑day high of 16.37, a spike of nearly 2.91 points from the opening level.  

The triggers were threefold: the rupee weakening to 95.78 per dollar, sustained FII selling of ₹8,776 crore (the highest daily outflow of the week), and heightened uncertainty over the central bank’s guidance on inflation, liquidity and currency stability. Institutional investors increased hedging activity in Nifty options, directly lifting the VIX. 

After the RBI announced it would keep the repo rate unchanged at 5.25% and unveiled a multi‑pronged dollar‑inflow package – including tax exemptions for foreign investors in government securities, higher NRI investment limits (doubled to 10% of paid‑up capital) and concessional FCNR‑B terms – volatility expectations eased. The index gradually retreated from its peak and closed at 15.79, a decline of 0.60% (‑0.1000 points) from the previous close. The Sensex gained approximately 270 points and the Nifty rose over 62 points following the policy announcement, helping ease pressure on volatility expectations.