New Delhi, March 2 -- Indian stock indices settled in the red, but recovered substantially from the early losses on Monday, amid escalating tensions in West Asia.

Sensex closed at 80,238.85 points, down 1,048.34 points or 1.29 per cent, while Nifty closed at 24,865.70 points, down 312.95 points or 1.24 per cent.

"The India VIX has edged higher, signalling increased uncertainty and risk aversion among market participants," said Vinod Nair, Head of Research, Geojit Investments Limited.

At closing today, India VIX, which indicates volatility in the markets, were whopping 25 per cent up. Volatility Index is a measure of the market's expectation of volatility over the near term. Volatility is often described as the "rate and magnitude of ch...