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India VIX cools 13% in two days; still well above pre–West Asia war levelsMarket volatility eased as equities extended gains for a second session, with India VIX falling sharply, though it remains elevated amid lingering uncertainty linked to global geopolitical developments.By Bhupendra Paintola  March 17, 2026, 6:58:02 PM IST (Published)3 Min ReadIndia’s market volatility eased on Tuesday (March 17), as equities closed higher for a second straight session, signalling some cooling of recent nervousness.

The India VIX, which tracks expected volatility in the Nifty, declined 8.4% during the session and is down 13% over the past two days, following a 4.6% fall on Monday. The easing comes after a period of sharp swings driven by the US-Iran conflict.

That said, volatility remains elevated, with the India VIX still over 44% above its February 27 close of 13.7, just before tensions escalated.

Earlier, the index had surged 65.32% to 22.65 by March 13, reflecting heightened uncertainty after the United States, along with Israel, launched strikes on Iran on February 28. The index’s 52-week range stands between 8.72 and 24.49.

Markets extend gains after recent decline

Benchmark indices ended higher for the second consecutive session. The Sensex rose 568 points to 76,071, while the Nifty gained 172 points to 23,581.

This follows Monday’s rally, when the Sensex climbed 938.93 points and the Nifty advanced 257.70 points.

The rebound comes after a sharp correction earlier this month, during which the Sensex fell 6,723 points till March 13, while the Nifty declined 2,062 points amid weak global cues.

The recent recovery is partly attributed to value buying after markets entered oversold territory, along with some easing in geopolitical concerns.

Sentiment improved after Iran said it would allow ships from most countries, excluding the US and Israel, to pass through the Strait of Hormuz. Meanwhile, NATO countries rejected a proposal by the US president to take control of the route.

Also read: Nifty ends near day's high for second straight session; Midcaps stage a rebound

Volatility eases, outlook still mixed

While the fall in India VIX suggests some easing in selling pressure, it remains uncertain whether the recent correction has fully played out.

Jai Bala, CMT, Cashthechaos.com, said the market could see two possible scenarios. “I believe the markets have two possibilities. Either the low that the market saw yesterday, 22,955, that’s either the bottom… that’s not my preference. I would like to see the markets make one lower low below 22,955. If it does that, then we are looking at a very significant move higher,” he said.

He added that April could see stronger momentum. “In April, I expect the markets to be more convincingly bullish, and the doubts hanging over the markets would have eased by the first week of April.”

At the same time, he noted that even if markets have already bottomed out, they could see a rally followed by another pullback. “The markets could rally to 24,500 or even 25,000 and then come back again towards 23,000.”

Overall, he said the medium-term trend remains positive.Continue Reading(Edited by : Sheersh Kapoor)TagsIndian Marketniftysensexshare market today