Sebi chairman Tuhin Kanta Pandey on Monday urged investors to remain calm amid sharp volatility in financial markets triggered by the escalating conflict in West Asia, saying India’s underlying economic fundamentals remain resilient despite global uncertainties.“It’s important not to panic at this moment, but to remain calm amidst this problem. Over the long run, it (Nifty) has continued to reflect the strength and resilience of India’s growth story,” Pandey said while speaking at an event marking 30 years of the NIFTY 50 index at the NSE in Mumbai.He said domestic markets are currently witnessing “dramatic super-volatility”, as the war in West Asia has disrupted critical shipping routes and caused shocks in global oil and gas supply chains.“Like the rest of the world, India too is deeply impacted by such developments,” Pandey added.Despite the current turbulence, the market regulator emphasised that India’s strong economic foundations have helped the country withstand multiple global shocks in the past, providing stability to domestic markets.Pandey also said the evolution of the benchmark Nifty index should be viewed in the context of the broader transformation of India’s financial markets during the mid-1990s, when economic liberalisation gathered pace.
“The mid-1990s were a defining phase for India’s financial markets. In the early era of economic liberalisation, financial sector reforms were gaining momentum and institutions were being built to support a more transparent and efficient market system,” he said.He noted that one of the most important developments of that period was the establishment of the National Stock Exchange (NSE), which introduced technology-driven trading, nationwide market access, transparent auction mechanisms and modern risk management systems to India’s capital markets.
