India VIX Rises 4.40% as US-Iran Tensions Lift Oil September 7 2026

Mumbai, Sept 7: India VIX rose to 11.15 in the opening session on Monday, up 0.47 points or 4.40% from Friday’s close of 10.68. The index opened at 10.68 and moved between 10.27 and 11.28 as US-Iran tensions pushed Brent crude towards $97 and Indian equities opened lower. The move followed a 5.82% fall in India VIX on Friday. 

11.15 VIX Rises After Friday’s 5.82% Fall 

India VIX reversed higher after its second consecutive decline on Friday. The index closed at 10.68 on 4 September, down 5.82%. Around 9:20 IST on Monday, it was reported at 10.84, up 1.50%, while another early reading showed 10.88 at 9:34 IST, up 1.83%. The early high was 11.28 and the low was 10.27. Its 52-week range remained 8.72-28.90, while its five-year return stood at 17.62%. 

US-Iran Escalation Pushes Brent Towards $97 

US-Iran military escalation was the strongest global development shaping Monday’s risk pricing. Reports indicated that US forces had struck three Iranian oil tankers, while concerns grew around vessels moving through the region and possible disruption to Middle Eastern oil supplies. Brent crude moved towards $97 a barrel, with prices reported around $96.8-$97. 

Higher crude can affect India’s trade balance, rupee, corporate margins, inflation expectations, interest-rate expectations and equity valuations. The geopolitical escalation and oil-price increase coincided with the early rise in India VIX. 

Nifty Below 23,850 Adds to Early Volatility 

Indian equities opened lower as oil prices rose. The Sensex fell more than 250 points in early trade, while the Nifty slipped below 23,850. Since India VIX is derived from Nifty options, weakness in the benchmark formed a direct domestic backdrop for the volatility index. 

The opening sequence combined geopolitical concerns and higher crude with a weaker Nifty, while India VIX remained around 10.8-11 early. 

Nikkei 2.2% Rise Limits Wider Market Pressure 

Asian equities provided an offsetting factor. Japan’s Nikkei rose 2.2%, South Korea’s Kospi gained 3.1%, and Chinese blue chips advanced 0.2% on Monday. The gains were linked partly to optimism following strong US employment data. 

Stronger regional markets limited the wider risk-off backdrop during the opening session, leaving Indian equities to balance higher crude and Middle East tensions against gains across key Asian markets. 

162,000 US Jobs Lift Fed Rate Uncertainty 

The US August employment report added another global factor. The US economy reportedly added 162,000 jobs, above expectations, reviving expectations that the Federal Reserve could raise interest rates at its 15-16 September meeting. 

The stronger labour market reduced expectations of monetary easing and increased uncertainty around US rates, affecting global yields, foreign portfolio flows, emerging-market currencies and equity risk premiums. 

US Inflation Data Keeps September Rate Outlook Unclear 

Markets were also awaiting US inflation data due later in the week. The stronger jobs report increased uncertainty around the Federal Reserve’s September decision, while inflation figures could influence expectations. 

The rate outlook also affected technology stocks. IT stocks fell around 2% in early trade as stronger US jobs data and higher US rate expectations pressured the sector, adding to weakness in the Nifty. 

Rupee at ₹94.42 Gets Support From RBI 

The rupee remained stable despite higher crude prices. It was reported around ₹94.42 against the US dollar, compared with ₹94.4850 previously, with suspected Reserve Bank of India intervention supporting the currency. 

RBI support provided a stabilising factor as higher oil prices can pressure the rupee. The currency did not add significant weakness to the opening market conditions. 

FII Shorts Meet ₹8,920 Crore DII Buying 

Foreign institutional positioning remained mixed. Reports indicated that foreign institutional investors had increased index-futures shorts, while their long positions had also risen. Friday data showed foreign portfolio investor selling of ₹3,112 crore against domestic institutional investor buying of ₹8,920 crore. 

The flow pattern combined foreign selling with domestic institutional buying, providing a liquidity cushion during the opening. 

NSE Pre-Open Rules Change from 7 September 

Monday was the first session under revised National Stock Exchange pre-open-session rules. The pre-open window remained 9:00-9:15 AM, but market and limit orders were permitted from 9:00 to 9:05 AM; after 9:05, only limit orders could be entered or modified; order matching occurred around 9:10-9:12 AM, followed by the regular opening at 9:15 AM. 

The rule change was a domestic market-structure development, rather than a primary catalyst for the VIX rise. 

September VIX Has Fallen in 10 of 18 Years 

Historical September data show India VIX recorded negative returns in 10 of 18 years. The maximum positive change was 34.92% in 2018, with an average positive change of 19.02%. The maximum negative change was 26.10% in 2009, while the average negative change was 8.99%. September’s average change was 3.46%. Monday’s movement began from 10.68 after Friday’s decline. 

11.28 Early High Marks a Low-Base Rebound 

The opening-session picture combined US-Iran escalation, Brent crude near $97, weaker Indian equities, higher US rate expectations and pressure on IT stocks. These factors were partly offset by stronger Asian markets, RBI support for the rupee and domestic institutional buying. India VIX rose from 10.68 to 11.15, while the early high of 11.28 marked the session’s strongest move during the reported opening period. 

India VIX opened at 10.68 and rose to 11.15, up 4.40%, with an early high of 11.28. The session combined US-Iran tensions, Brent crude near $97 and weaker Indian equities with stronger Asian markets, RBI currency support and domestic institutional buying. Revised NSE pre-open rules also took effect on Monday. 

Source 

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