India VIX surges on weak global cues

India VIX, also known as the fear gauge or volatility index, surged 8.6 per cent on Friday to end at 14.02 as benchmark indices retreated mirroring global cues. The gauge has risen nearly 18 per cent this month amid Indian equities making new highs, but is far lower than this year’s peak of 28.14 touched in February. Global markets have come under pressure this week on fears of a taper (reduction in liquidity) by the US Federal Reserve later this year, surge in Covid-19 cases in key economies and regulatory crackdown in China. Indian market could see some more volatility if the global cues remain weak.