Don't panic amid geopolitical turbulence; India's fundamentals remain resilient, says Sebi chief

Mumbai, Mar 9 (PTI) Amid heightened volatility in the financial markets due to the ongoing West Asia conflict, Sebi Chairman Tuhin Kanta Pandey on Monday urged investors to remain calm, saying India's domestic economic fundamentals remain strong 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 addressing an event to celebrate 30 years of NIFTY 50 at the NSE here.

He said local markets are currently experiencing "dramatic super-volatility" as the war in West Asia disrupts key shipping routes and triggers oil and gas supply shocks, leading to supply and demand-side disruptions globally.

"Like the rest of the world, India too is deeply impacted by such developments," Pandey added.

However, the market regulator 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.

Pandey said the emergence of the benchmark index must be viewed in the context of the broader transformation taking place in India's financial markets in the mid-1990s.

"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.

One of the most significant developments during that period, Pandey said, was the establishment of the NSE, which introduced technology-driven trading, nationwide access, transparent auction mechanisms and modern risk management systems. PTI MSU BAL BAL