India VIX Spikes 50 per cent in a Day: First Time Ever? What History Suggests Could Follow

Historically, as we’ve seen, such sharp spikes are often followed by swift reversals

The India VIX is a volatility index that reflects investors’ perception of market volatility in the near term — specifically, it indicates the expected volatility over the next 30 calendar days.

How is it interpreted?
Quite simply, the higher the India VIX, the greater the expected volatility, and vice versa.

A Historic Spike on April 7, 2025

On Monday, April 7, 2025, the India VIX skyrocketed, registering a rare and dramatic jump of over 50 per cent in a single trading session. With this surge, the index climbed to near the 21 mark, its highest level since August 2024.

What Triggered the Surge?

The spike in volatility has been driven by growing uncertainty surrounding global trade tensions. US Federal Reserve Chairman Jerome Powell recently warned that the economic fallout from the escalating trade war could be worse than expected.

To add to the market's anxiety, Powell has also paused further interest rate cuts, adopting a wait-and-see approach due to rising concerns over inflation and slowing growth.

Has India VIX Ever Risen This Much in a Day?

Such extreme single-day surges in the India VIX are exceedingly rare. Historically, there have only been four instances when the index has risen more than 50 per cent in a single trading session. Let’s take a look:

1. August 24, 2015 – Black Monday

• India VIX surged 64.36 per cent in a single day and crossed the 30 mark intraday.
• In the following session, it hit a high of 35.57.
• Over the next month, it declined by 55 per cent, falling below the 16 mark.
• The same day, the Sensex plunged nearly 6 per cent, erasing around Rs 7 lakh crore of wealth.

2. August 24, 2009

• India VIX jumped 65.10 per cent, touching 73.5 intraday.
• On August 28, 2009, it made an intraday high of 86.88.
• By September 30, 2009, it had cooled off by nearly 60 per cent, falling to 27.56.

3. May 22, 2009

• A massive jump of 68.63 per cent was seen, with an intraday high of 87.53.
• By June 22, 2009, the VIX had dropped 49.4 per cent, slipping below 45.
• On a closing basis, it settled at 47.53.

Historically, as we’ve seen, such sharp spikes are often followed by swift reversals — but they also serve as a warning that turbulence lies ahead.

Disclaimer: The article is for informational purposes only and not investment advice