Amid heightened volatility in financial markets due to the ongoing conflict in West Asia, SEBI Chairman Tuhin Kanta Pandey has urged investors to remain calm. Addressing an event to celebrate 30 years of the NIFTY 50 in Mumbai last evening, Mr. Pandey said that India's domestic fundamentals have continued to remain strong and provide resilience amid such uncertainties.
Stating that global markets are currently experiencing turbulence as the war in West Asia has disrupted key shipping routes and triggered oil and gas supply shocks, leading to supply and demand-side disruptions, Mr. Pandey said that India is also deeply impacted by such developments. However, the SEBI Chairman stressed that India's underlying economic strength has helped it navigate multiple global shocks in the past and continues to provide stability to domestic markets. Mr. Pandey said that NIFTY has navigated several such phases, but over the long run, it has continued to reflect the strength and resilience of India's growth story.
While the Nifty was originally introduced as a benchmark index, Mr. Pandey said that its role has expanded considerably over time. He added that the index today serves as a central reference point for institutional investors, mutual funds, and portfolio managers. Mr. Pandey further informed that since its inception, the Nifty 50 has increased around 25-fold, delivering a compound annual growth rate of around 11 percent.
The SEBI Chairman said that over the last thirty years, Nifty has become a mirror of corporate India, a barometer of investor sentiment, and a compass for the direction of Indian markets.