Volatility Index is a calculation of markets expectation of volatility over the short term. India VIX is a volatility index based on the Nifty 50 Index Option prices. From the best bid-ask prices of Nifty 50 Options contracts, a volatility figure (%) is calculated which provides an indication of the expected market volatility over the next 30 days.
Volatility is described as the “rate and magnitude of changes in prices” and commonly referred to as “risk”. Volatility index is a tool aimed to help traders understand market risks better and take decisions accordingly.
Such indexes have been used widely and relied upon by investors in developed markets. The Chicago Board Options Exchange launched such an index, CBOE VIX, in 1993.
The NSE, does not intend to introduce tradable products based on the India VIX. Many market participants have been calling for tradable products which they would find it useful in hedging their portfolios.
Meanwhile, India VIX closed at 51, which is a 2-month high, indicating high volatility in the short term. If you want the historical data of India VIX, you can download it from here.