India VIX today slumped as much as 15.4 per cent, raising odds of a Santa Claus rally.
The index heads towards its biggest one-day fall since September 18 but not yet serving as a contrarian indicator.
The US Federal Reserve has announced a gradual tightening cycle with its first rate hike in nearly a decade.
The NSE index has fallen only 4 out of 20 times in December since 1995 vs 6 times of MSCI Asia Ex Japan index, according to Reuters Calculations.
Based on history, Nifty should end near 7,950-8,000 for December 2015 to be a positive month.
Also, 8,000 holds highest open interest among call options, according to NSE data.
Asian EMs including India rose; dovish Fed may boost risk appetite and flows.