I see a lot of volatility in market in past 2 days, but IndiaVIX is falling. Its close to 19. 5 now. Any reason why?

They say volatility increases when markets are most fearful. This is the reason why Vix is also called the “Fear Index”. ViX shoots up when markets fall and cools of when markets go up…which is what you have observed.

Many studies have affirmed that higher VIX is bearish and vice versa. Beyond being used in pricing many structures, Vols are also traded these days. Higher vols means higher variations in theoretical asset prices and hence uncertainty.

Pretty much there was wide consensus of a bullish trend around Budget event. (also evident from massive build up of open interest in calls) Hence we saw VIX cooling.

But Vix fell on budget day, and even today. The markets were definitely fearful on budget day. Isn’t it contrary to the definition you gave?
Also if Vix cools of when markets goes up, why did it reach 52 week high during election results on May?