India VIX is the India Volatility Index, which measures the amount of volatility that traders expect over the next thirty days in the NSE index. It is a calculation of price swings investors expect in the market over important market news. India VIX is non-directional, meaning it doesn’t indicate which direction the market will move. When the value of the index is low, it indicates the absence of fear factor in the market, meaning investors are more confident to invest. Conversely, a higher value is an indication of rising uncertainties and fear factors. India VIX is calculated by the NSE using the Black and Scholes model, which uses five variables including the strike price, market price of the stock, time to expiry, risk-free rate, and volatility. The index considers five variables for calculation – strike price, the market price of the stock, expiry date, risk-free returns, and volatility. India VIX moves in a range with a median of 15-35, but it can also reach extremely low or high values under certain circumstances. India VIX is a reliable and sound indicator of the market volatility and fluctuations which informs the intraday traders about the rise and fall in the market volatility. It helps traders and investors to identify the effect of any expected volatility that may occur in the stock markets.