India VIX Explained: Measuring Market Volatility
Market volatility is a concept that both excites and intimidates investors worldwide. For anyone keeping an eye on Indian equity markets, the India VIX is a term that's frequently encountered and often understood only in passing. This article takes a deep dive into what India VIX is, how it functions, and why it’s an important tool for investors, alongside a brief exploration of its interplay with financial metrics such as EBITDA.
What is India VIX?
India VIX, short for India Volatility Index, measures the volatility or fluctuations expected in the Indian stock market (Nifty 50) over the next 30 calendar days. Essentially, it serves as a "fear gauge," reflecting investor sentiment and expectations of market movements. The index is calculated using options prices on the National Stock Exc...