The India Volatility Index shot up to a three-year high of 24.05 on Monday, amid rising uncertainty over the new government formation and soaring crude oil prices.
The India VIX, the fear gauge for domestic equities, rose 5.76 per cent to settle at 24.05, after an intra-day high of 24.56.
“Crude and election uncertainties is pushing the India VIX up,” IIFL co-promoter and MD R Venkataraman told PTI.
Besides the ongoing Lok Sabha elections, market sentiment was hit as macroeconomic worries resurfaced, following reports that the US will end sanctions waiver on Iranian oil imports, analysts said.
Global benchmark Brent crude climbed to a multi-month high of $73.81 per barrel, a 2.56 per cent rise.