India VIX: Market volatility index falls 12% in two days as bulls attempt recovery

India VIX, the volatility index of the Indian equity market (specifically Nifty), has plunged 12% in two sessions as bulls attempt a comeback after prolonged period of correction. Earlier, India VIX surged 65.32% from 13.70 on February 27, 2026 to 22.65 on March 13, 2026 after United States, in coordination with Israel, launched military strikes against Iran on February 28 this year. 

The wave of attacks has caused a turmoil in equity markets, pushing volatility into the higher orbit across the globe. 

The panic selloff in the Indian market pulled Sensex lower by 6723 pts till March 13. On similar lines, Nifty cracked 2,062 pts on weak global cues. 

However, the Indian market saw some relief rally on March 16 and March 17 as investors resorted to value buying after market and a majority of stocks reached oversold zone. 

The trend reversal was also triggered by a statement from Iran that it has allowed ships of all countries except US and Israel to pass through the Hormuz Strait. The latest development is expected to ease oil shortage through the route, which accounts for 20% of the global oil supply. Subsequently, global markets saw trend reversal impacting their Indian counterparts. 

This led to fresh bouts of buying on Dalal Street since Monday (Previous session). 

On Monday, Sensex surged 938.93 points or 1.26 per cent to end at 75,502.85, while the NSE Nifty50 climbed 257.70 points or 1.11 per cent to settle at 23,408.80. In the afternoon session today, Sensex was trading 515 pts higher at 76,018 and Nifty rose 177 pts to 23,585. 

The two-session rally cooled off India VIX by 12% from 22.65 on March 13 to 19.91 today, signalling a major reduction in volatility on the Dalal Street. India VIX slipped 7.82% to 19.91 as bulls attempted a recovery for the second straight session today.