India VIX signals caution, but don't panic just yet, say analysts

The India VIX Index shot up nearly 9 per cent to finish at 19.82 amid market sell-off. A gauge for volatility, the gauge signals caution among investors. But there are no signs of panic just yet, observe analysts.

The latest reading is well below this year’s average of 20.7. Moreover, Monday’s 8.8 per cent advance is only the 10th largest seen this year.

The India VIX Index can be a lead indicator for market sell-off. For instance, it had shot up to 32 on February 24, ahead of a 7 per cent fall in the Nifty in less than