Market Volatility Surges as India VIX Hits Ten-Month High Amid FPI Selling

Volatility in Indian equities rose sharply on 6 March as the India VIX, widely referred to as the market’s fear gauge, climbed to its highest level in nearly ten months. The spike came at a time when rising crude oil prices and global geopolitical tensions prompted foreign investors to pare their exposure to domestic equities.

Data from the session showed foreign portfolio investors stepping up selling in Indian stocks in recent trading days, adding pressure on benchmark indices. Analysts said the increase in volatility reflects heightened uncertainty among market participants as global risks begin to weigh on investor sentiment.

A surge in oil prices has also contributed to the cautious mood in the market. Since India relies heavily on imported crude, any sustained rise in energy costs can affect inflation expectations, corporate margins and the country’s current account balance. These concerns often translate into greater swings in equity markets.

Market strategists noted that higher readings in the volatility index typically signal nervous trading conditions, with investors seeking protection against sudden price movements. As a result, traders expect the market to remain sensitive to global developments and energy price trends in the coming sessions.

Despite the rise in volatility, domestic institutional investors have continued selective buying in certain sectors, helping prevent a deeper slide in the broader market.