India's volatility index or the fear gauge surged to 65 percent on Monday to 22.78 on heightened fears of global trade war after US President Donald Trump's reciprocal tariffs and retaliation from China.
India Vix spiked to nearly 66.98 percent intraday to 22.84, one of the sharpest single-day rises in recent years.
The surge in volatility was seen as the benchmark indices opened sharply lower, mirroring the global risk-off sentiment triggered by escalating trade tensions and recession fears in the U.S. The Sensex crashed over 3,900 points, while the Nifty fell below the 22,000 mark in early trade, weighed down by broad-based selling.
All the Nifty sectoral indices were trading deep in red, with Auto, IT, Metal, banking among the major laggards. All the Nifty 50 stock were also in the red led by Trent, Tata Steel, Shriram Finance, JSW Steel and Tata Motors.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, "Markets are going through extreme volatility driven by deep uncertainty. No one knows how this tariff turmoil will evolve, and that is keeping investors on edge globally."
The situation was no different elsewhere as trade war fears gripped the investors globally. In Asian markets, Hong Kong's Hang Seng tanked nearly 11 percent, Tokyo's Nikkei 225 plunged nearly 7 percent, Shanghai SSE Composite index dropped over 6 percent and South Korea's Kospi index sank 5 percent.
US markets ended sharply lower on Friday. The S&P 500 plummeted 5.97 percent, Nasdaq composite slumped 5.82 percent and the Dow tumbled 5.50 percent on Friday.
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