India's VIX drops to all-time low—what it means for you

Business Dec 18, 2025

India's volatility index (VIX) just hit a historic low of 9.84, signaling expectations of calmer markets and lower volatility in the coming month.

Why does this matter?

A super-low VIX means traders expect smaller swings in the Nifty index, so hedging and option costs get cheaper.
But here's the catch: when things look too calm, some experts see it as a warning sign that risks might be lurking under the surface.

What's behind the drop?

Markets have been steady lately, with fewer big moves and quick recoveries after dips.
Plus, trading activity in derivatives has slowed down, and with major central bank decisions now out of the way, there's less need for cross-market hedging—keeping volatility at bay.