New Delhi, Dec. 19 -- India VIX is at record low levels. The volatility index settled at a record closing low of 9.71 on Thursday, December 18, falling 15% in December and down for the second consecutive month. A significant fall in the fear gauge reflects a sharp decline in perceived market risk and expected volatility.

Market participants appear to be pricing in stability rather than sharp directional moves in the near term. Such low readings typically emerge when markets are trading in a controlled range, and uncertainty around macro, earnings, or global triggers is limited.

The 9-12 range, as experts say, is the lower band, while the normal range for India VIX is around 12 to 15. In a normal scenario, when the market has enough trig...