India VIX slips to single-digit mark as Sensex, Nifty cheer US Fed rate cut 

The Indian market rallied in line with its global peers today after Federal Reserve cut its lending rate by 25 bps. The rally pushed India VIX, the volatility index of Indian market, to fall below 10 mark to 9.49. This is the one of the lowest level the index has seen in the last one year.

In early deals, Sensex rose 351.89 points, or 0.43 per cent, to 83,045.60 after climbing as much as 447 points in early trade. The NSE Nifty50 advanced 92.90 points, or 0.37 per cent, to 25,423.15, hitting a day’s high of 25,448.95

Fed last night announced first rate cut in nine months. This brings the federal funds rate to a range of 4.00% to 4.25%.

Investor sentiment was further buoyed as Fed Chair Jerome Powell signalled the possibility of two more quarter-point cuts later this year.

On Wednesday, the Sensex climbed 313.02 points, or 0.38 per cent, to 82,693.71, while the Nifty50 rose 91.15 points, or 0.36 per cent, to close at 25,330.25. The Indian market has surged for the third straight session in anticipation on rate cut by US Federal Reserve and hopes of US-India trade talks.