“We are meeting at a time when global markets are experiencing turbulence and volatility arising from the Middle East war, choking off vital shipping lines and triggering oil and gas supply and price shocks,”” Pandey said on Sunday. “Like the rest of the globe, India too is deeply impacted by such developments. Yet, amid such uncertainties, India’s domestic fundamentals have continued to remain strong.”
Pandey’s remarks come as financial markets worldwide react to fears that a widening conflict between the US and Iran could disrupt energy flows and global supply chains, raising inflation risks and increasing uncertainty for investors.
Addressing industry leaders and market participants at the event hosted by the NSE, the Sebi chief emphasised that periods of volatility are not new to Indian markets and that long-term resilience has historically prevailed.
“It is important not to panic at this moment, but to remain calm amidst this storm,” he said, noting that the Nifty has navigated multiple episodes of global shocks and uncertainty over the past three decades while continuing to reflect the strength of India’s growth story.
The benchmark index, launched in 1996, has grown alongside India’s evolving capital market ecosystem. According to Pandey, the index has increased about 25-fold since inception, delivering a compound annual growth rate of roughly 11%.
He also highlighted the rapid expansion of India’s investor base and market depth. The country now has more than 140 million unique investors, while the market capitalisation of companies listed on NSE exceeds 130% of India’s GDP, up from about 35% in the mid-1990s. Individual investors and domestic mutual funds together hold roughly 36% of the free-float market capitalisation of Nifty 50 companies, reflecting a growing shift of household savings into equities.Pandey noted that the Nifty has evolved from being just a benchmark index into a core pillar of the capital market ecosystem. More than 40 exchange-traded funds and index funds now track the index, offering investors low-cost ways to participate in equity markets.
He also underscored the role of strong institutions and regulation in sustaining market confidence. Over the years, Sebi has strengthened governance norms for market infrastructure institutions, enhanced surveillance systems, and deployed technology-driven monitoring tools such as real-time scanners for detecting unauthorised digital activity.
As India’s economy expands into new sectors driven by technology and innovation, Pandey said the country’s markets will become larger and more complex, but also more resilient.
“Over these thirty years, the Nifty has become a mirror of corporate India and a barometer of investor sentiment,” he said, expressing confidence that it will continue to anchor India’s capital markets through future cycles of volatility.