NSE volatility index surges on emerging market turmoil

The NSE volatility index gained 10 per cent today, heading towards its biggest single-day percentage gain since September 30, 2013, reflecting the pressure on emerging markets.

The CBOE Emerging Markets Volatility Index also surged, heading for its biggest single-day rise since June 2013.

VIX measures the cost of protection via options and is seen by some investors as a "fear" gauge.

Dealers said the rise in the NSE's volatility index also reflects uncertainty ahead of the central bank's policy review on Tuesday.

Copyright: Thomson Reuters 2014