Experts warn trouble as volatility index hits high of 19.85

Riken Mehta
Moneycontrol.com

Volatility index India VIX, touched a high of 19.85 on Wednesday. The last time the index surged this level was in June, 2012.  The index, based on Nifty Index Option prices and correlated inversely proportional to the Nifty, has been touching sharper lows and highs over the last one month.
 
 
 
 
 
 
 
 
 
Speaking to CNBC-TV18, Sanju Verma of Violet Arch Cap said, "The sharp swings in the index — from 13-14 on the lower to highs of 18-20 —are a cause of concern. If the India VIX was to breach the level of 20 on the upside, it could mean trouble in the bourses in the intermediate to short-term."
The volatility index also know as the fear gauge indicator is a measure of the amount by which an underlying index is expected to fluctuate in the near-term.