India's volatility index jumps over 14% as oil prices and geopolitical tension shake markets

On Monday, the India VIX spiked more than 14% in intraday trading, peaking at 14.15, as traders priced in greater uncertainty. The country's major equity benchmarks slipped, with the Nifty 50 losing around 1.3% and the Sensex shedding about 1.35%. The surge in the volatility index follows a sharp rebound of roughly 36% over the previous three sessions, according to Sudeep Shah of SBI Securities, who noted a breakout above a downward-sloping trendline.

Analysts attributed the market stress to climbing Brent crude prices, now above $106 per barrel, and renewed geopolitical tension after the United States rejected Iran's proposal to reopen the Strait of Hormuz. Ponmudi R of Enrich Money warned that these factors could keep investor sentiment cautious. Foreign institutional investors sold equities worth billions of rupees on the preceding Friday, adding to the bearish tone. Technical commentary highlighted support around the 11.0-11.3 zone and resistance near 15.3-15.5, suggesting that a sustained breach could push volatility higher.