India VIX shoots up 26% as Trump's Iran ceasefire 'over' remark rattles markets; Sensex, Nifty slump over 2%
The 30-share BSE Sensex pack plunged 1,677.12 points or 2.15 per cent to settle at 76,503.60, while the NSE Nifty50 index declined 516.65 points or 2.12 per cent to close at 23,882.05.
- Jul 8, 2026,
- Updated Jul 8, 2026 3:48 PM IST
India's volatility gauge, the India VIX, surged on Wednesday, reflecting a sharp rise in investor anxiety after US President Donald Trump said the ceasefire understanding with Iran was "over", reigniting geopolitical concerns in West Asia and triggering a broad-based selloff in equities.
The India VIX, widely known as the market's fear gauge, climbed 26.03 per cent to 14.68, according to NSE data. The index measures the market's expectation of volatility over the next 30 days based on Nifty50 options. A rise in the VIX typically signals heightened uncertainty and growing risk aversion among investors.
Trump said the memorandum of understanding (MoU) aimed at ending the conflict with Iran was "over" and added that he did not want to engage with Tehran.
The interim understanding between Washington and Tehran was intended to provide a 60-day window for negotiations on a permanent agreement. However, indirect talks held in Qatar reportedly ended without any breakthrough, while the US military launched a fresh wave of strikes against Iran on Tuesday.
Adding to the uncertainty, reports of renewed attacks on vessels in and around the Strait of Hormuz revived concerns over potential disruptions to one of the world's most critical energy trade routes.
Following Trump's remarks, crude oil prices rose sharply. At last check, Brent crude futures were trading 6.16 per cent higher at $78.73 per barrel, while US West Texas Intermediate (WTI) crude advanced $6.25 to $74.84 per barrel.
The surge in crude prices weighed on equity markets across Asia, including India, as investors turned risk-averse.
Back home, the 30-share BSE Sensex pack plunged 1,677.12 points or 2.15 per cent to settle at 76,503.60, while the NSE Nifty50 index declined 516.65 points or 2.12 per cent to close at 23,882.05.
The broader indices also witnessed selling pressure. Nifty Midcap100 slipped 1.55 per cent, while Nifty Smallcap100 cracked 2.24 per cent.
India's volatility gauge, the India VIX, surged on Wednesday, reflecting a sharp rise in investor anxiety after US President Donald Trump said the ceasefire understanding with Iran was "over", reigniting geopolitical concerns in West Asia and triggering a broad-based selloff in equities.
The India VIX, widely known as the market's fear gauge, climbed 26.03 per cent to 14.68, according to NSE data. The index measures the market's expectation of volatility over the next 30 days based on Nifty50 options. A rise in the VIX typically signals heightened uncertainty and growing risk aversion among investors.
Trump said the memorandum of understanding (MoU) aimed at ending the conflict with Iran was "over" and added that he did not want to engage with Tehran.
The interim understanding between Washington and Tehran was intended to provide a 60-day window for negotiations on a permanent agreement. However, indirect talks held in Qatar reportedly ended without any breakthrough, while the US military launched a fresh wave of strikes against Iran on Tuesday.
Adding to the uncertainty, reports of renewed attacks on vessels in and around the Strait of Hormuz revived concerns over potential disruptions to one of the world's most critical energy trade routes.
Following Trump's remarks, crude oil prices rose sharply. At last check, Brent crude futures were trading 6.16 per cent higher at $78.73 per barrel, while US West Texas Intermediate (WTI) crude advanced $6.25 to $74.84 per barrel.
The surge in crude prices weighed on equity markets across Asia, including India, as investors turned risk-averse.
Back home, the 30-share BSE Sensex pack plunged 1,677.12 points or 2.15 per cent to settle at 76,503.60, while the NSE Nifty50 index declined 516.65 points or 2.12 per cent to close at 23,882.05.
The broader indices also witnessed selling pressure. Nifty Midcap100 slipped 1.55 per cent, while Nifty Smallcap100 cracked 2.24 per cent.