Volatility index stays elevated despite five-day market rally

ECONOMY – STOCKS

5 NOVEMBER 2026

• India’s stock markets may have extended their winning streak to five consecutive sessions, but the persistence of the volatility index (VIX) around 15 points suggests that investors remain far from reassured.
• The so-called ‘fear gauge’, which measures the market’s expected volatility over the next 30 days, has eased from its late-October high of 17 but remains elevated amid mounting global uncertainties.
• While the Nifty 50 has declined nearly 8% since the beginning of 2026, the VIX has surged 65.4% year-to-date, reflecting heightened investor anxiety despite the recent recovery in equities.
• “VIX basically suggests potential for volatility in markets. The market has been on a rally but investors fear a decline for several reasons. The crude crisis, flaring up of West Asia conflict, U.S. results and Trump’s response, all add to anxieties for global investors,” an investment strategist said.