Shri Ashishkumar Chauhan, Managing Director and CEO of the National Stock Exchange of India (NSE), provided keen observations on the performance of the Indian market in the face of global challenges, investor sentiment, and future opportunities. He expressed his opinions at the India Global Forum, Mumbai NXT25.
Even with a $1.5 trillion decline from its highest point, Chauhan highlighted the long-term growth path of Indian capital markets. In 2014, India’s market capitalisation was under $1 trillion. "Currently, it approaches $5 trillion—highlighting substantial wealth generation," he observed.
In response to worries about foreign investor withdrawals, Chauhan linked the trend to global interest rate fluctuations and a general 'risk-off' attitude affecting emerging markets. He emphasised India's relative insulation from global tariff conflicts, backed by its distinctive export makeup.
Consumer involvement remains a significant influence on the Indian market. More than 60 million Indians invest as little as Rs 250 each month through systematic investment plans (SIPs), resulting in a consistent monthly inflow of approximately US$ 2.5-3 billion into the market. “This indicates increasing confidence in Indian entrepreneurs and companies,” said Chauhan.
Regarding financial inclusion, Chauhan emphasised the significance of small-scale investments for enhancing market penetration. "These direct investments demonstrate an increasing sophistication among investors, even amid periods of market fluctuations," he noted.
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Although IPO activity is still robust, with more than 50 submissions recorded in late March, Chauhan recognised that ongoing global uncertainty might affect the timing of listings. In 2024, NSE facilitated 268 IPOs, generating $19.6 billion, the largest IPO fundraising globally, including 178 IPOs from the SME sector. In total, fund mobilisation at NSE surpassed US$ 209 billion.
In recent operational updates, Chauhan explained that the change in derivatives expiry from Thursday to Monday was due to regulatory modifications and market discussions. "It’s a standard modification, and we're waiting for more direction before making any further alterations," he stated.
In a balanced conclusion, Chauhan stated, “India is cautiously maneuvering through global upheavals.” The essentials are still robust, and our authorities and government persist in offering consistent support.
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