India VIX Jumps 5% Amid Middle East Tensions but Stays Below June Highs

Market Performance

On June 23, the India VIX —a key volatility index measuring investor sentiment in the equity market—spiked up to 5%, signaling caution among investors.

• The spike came shortly after the United States bombed three nuclear sites in Iran, escalating geopolitical tensions.
• However, despite the rise, the India VIX remains below the peak levels recorded earlier this month.

Main News

The jump in India VIX came in response to heightened uncertainty after the U.S. issued a warning of further military actions against Iran unless negotiations resumed. U.S. President Donald Trump even suggested the possibility of a "regime change" in Tehran via a social media post.

Although this triggered immediate volatility in Indian markets, the reaction was measured compared to the surge in crude oil prices, which climbed to $80 per barrel on fears of a blockade at the Strait of Hormuz—a key route for global oil shipments.

Despite growing concerns, the India VIX remains relatively calm. The index has not breached the June 13 high of 15.08, which was recorded after Israel launched a military strike on Iran's air defense and nuclear facilities.

Company Details

While the India VIX is not a traditional company stock, it plays a critical role in measuring market sentiment and risk. Investors and traders often monitor it to gauge their expectations for short-term volatility.

This month, the India VIX has reacted to multiple global developments:

• April 2: Surge after the U.S. announced reciprocal tariffs.
• May: A temporary rise following India's Operation Sindoor after the Pahalgam terror attack.
• June: Volatility resurfaced amid the Iran-Israel conflict and potential disruptions to the oil trade.

Summary of the Article

The India VIX  rose by up to 5% on June 23 amid escalating geopolitical tensions between the U.S. and Iran. However, it remains subdued when compared to the June 13 peak of 15.08. The broader market remains watchful, with oil prices surging due to risks around the Strait of Hormuz, but volatility levels have remained in check for most of the year.

Year-to-date, the India VIX has declined by 2%, indicating that despite intermittent shocks, the market continues to demonstrate resilience and quick recovery from global events.