India VIX Opens at 12.72 After Holding Near 12.66; Lower Volatility Persists as July Trading Nears End

Mumbai, July 28: India VIX, the domestic market’s volatility gauge, opened at 12.72 on Tuesday, up 0.04 points (0.32%) from the previous close of 12.66, indicating that volatility remained relatively contained after the sharp decline recorded in the previous trading session.  

During the opening session, the index traded between a day low of 11.72 and a day high of 12.82, while continuing to remain well below its 52-week high of 28.90 and above its 52-week low of 8.72.  

The latest reading follows a period in which market volatility eased after heightened fluctuations earlier in July, with traders continuing to monitor corporate earnings, macroeconomic developments and the ongoing derivatives series. 

India VIX Holds Near 12.72 After Previous Session’s 9.76% Fall 

India VIX opened at 12.66 and was trading at 12.72, reflecting a marginal gain of 0.32% in early trade after ending the previous session at 12.66. The opening movement suggests that volatility has remained largely stable following the nearly 9.76% decline recorded during the previous trading day, when the volatility gauge retreated to one of its lowest levels in recent sessions.  

Despite the modest uptick in early trade, the index continued to trade within a comparatively narrow intraday range of 11.72-12.82, indicating that the broader cooling trend seen during the second half of July has remained intact at the start of today’s session. 

Lower Oil Prices and Easing Global Risks Continue to Moderate Volatility 

The softer volatility environment follows developments that reduced uncertainty across financial markets during recent sessions. Reports indicated that geopolitical concerns surrounding the US-Iran situation moderated, while international crude oil prices corrected sharply from earlier highs.  

Lower crude prices eased concerns relating to inflation, corporate costs and broader macroeconomic pressures. At the same time, the unwinding of protective options positions reduced implied volatility across Indian equities, contributing to the lower India VIX readings seen in recent trading sessions.  

These developments followed the elevated volatility witnessed earlier this month when geopolitical developments and higher energy prices had driven hedging activity higher. 

Equity Recovery and July Expiry Keep Volatility In Check 

The moderation in India VIX also coincided with a broad recovery across benchmark equity indices during the previous trading session. The BSE Sensex advanced by 776 points (1.02%) to close at 76,836, while the Nifty 50 gained 228.50 points (0.96%) to finish at 23,995.95, ending a five-session losing streak. The rebound reduced demand for downside protection in the options market, contributing to softer implied volatility. Market participants also remained focused on the July monthly Futures and Options (F&O) expiry, with reports highlighting range-bound positioning, increased option writing activity and a relatively orderly rollover process, all of which supported a lower volatility environment despite the expiry session. 

Rupee Strength, Institutional Flows and Derivatives Data Support Stability 

Additional market indicators also pointed towards relatively stable trading conditions during recent sessions. The Indian rupee appreciated by approximately 0.7% against the US dollar, while reports also noted lower bond yields, factors that contributed to improved financial market stability.  

Institutional activity showed Foreign Institutional Investors (FIIs) remained net sellers of approximately ₹1,688 crore, whereas Domestic Institutional Investors (DIIs) recorded net purchases of around ₹2,329 crore, offsetting selling pressure. In the derivatives market, the July Nifty futures contract settled at 24,040, representing a premium of 44.05 points over the spot index level of 23,995.95.  

Open interest data showed the 24,000 call strike carried the highest call open interest at 26.41 lakh contracts, while the 23,900 put strike held the highest put open interest at 21.3 lakh contracts. 

Technical Levels Show Neutral Trend Despite Lower Volatility 

India VIX continues to carry a Neutral technical rating across the daily timeframe. The published pivot levels place the Classic Pivot Point at 13.20, with resistance levels at 13.79, 14.93 and 15.52, while support levels are identified at 12.06, 11.47 and 10.33. The opening level of 12.72 remained below the pivot point, while continuing to trade comfortably above the lower support levels.  

The index has also delivered 33.86% year-to-date returns, although it remains significantly below the volatility peak recorded during the year. Historical seasonality data shows that 15 out of the last 18 years have produced negative July returns for India VIX, with an average monthly decline of 8.49%, a maximum positive change of 7.39% recorded in 2011, and a maximum negative change of 24.22% in 2022. 

July Trading Marks Sharp Shift from Early-Month Volatility Spike 

The current volatility levels represent a notable contrast to the sharp movements witnessed earlier this month. On 8 July 2026, India VIX surged by nearly 30%, reaching an intraday high of approximately 15.15 amid heightened geopolitical concerns, rising crude oil prices, earnings-related uncertainty and increased hedging activity. Volatility gradually moderated through the middle of July before rising again by around 5.6% on 23 July alongside renewed weakness in equities and firmer oil prices. The subsequent decline to 12.66 and the opening level of 12.72 on 28 July indicate that the volatility gauge has continued to remain within the 12-13 range after the earlier spikes eased. 

India VIX opened at 12.72 on 28 July 2026, maintaining the comparatively lower volatility levels established after the previous session’s decline. The index continues to trade well below its July peak while market participants monitor earnings announcements, macroeconomic developments and the ongoing derivatives series, with the latest readings reflecting current market volatility conditions rather than the elevated levels recorded earlier this month. 

Source 

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