NSE CEO Ashishkumar Chauhan predicts growth for Indian economy, foreign capital influx
NSE CEO Ashishkumar Chauhan anticipates India's economy will grow faster, bolstered by returning foreign investments.
MUMBAI, Nov 9: The Indian economy is expected to experience accelerated growth as foreign capital returns to the markets, according to Ashishkumar Chauhan, CEO of the National Stock Exchange (NSE). Chauhan made these remarks during Muhurat trading on Diwali, emphasizing that India’s GDP is growing at an impressive rate of 7.5% year-on-year.
Chauhan noted that global uncertainties and high crude oil prices have not weakened India’s economic fundamentals. He stated, “India continues to be the fastest-growing large economy in the world,” adding that the country maintains fiscal stability and invests in infrastructure and job creation.
Addressing concerns about oil imports, which account for approximately 85% of India’s consumption, he pointed out that effective fiscal management and robust tax collections have allowed the government to invest in growth despite these challenges. “The fiscal strength enables the government to invest heavily in infrastructure and job creation, boosting overall investor confidence,” Chauhan explained.
Regarding domestic market liquidity, Chauhan revealed that financial savings in India have increased significantly, reaching around USD 1.4 trillion annually. This growth indicates a strong base of domestic capital that supports the stock market and enhances investment prospects.
Foreign institutional investors (FIIs) are also showing renewed interest in Indian equities, according to Chauhan. He stated, “Crucially, foreign institutional investors have also started favouring Indian markets again, which serves as a very good omen for the upcoming Samvat year.” This shift is expected to positively influence market dynamics moving forward.
While the outlook is positive, Chauhan urged caution among investors. He advised, “Believe in long-term investing rather than short-term tips. Avoid intraday speculative trading or derivative plays without knowing how to manage risk. Stay invested for the long run.” This guidance aims to encourage prudent investment strategies as the markets evolve.
In his remarks, Chauhan also discussed technological advancements at the NSE, including improvements in its trading infrastructure and the introduction of AI to enhance analytics and insights for retail participants. The NSE plans to launch new features for its digital platforms to improve the experience for individual investors.
Kamlesh Shroff, President of the Association of NSE Members of India, echoed Chauhan’s optimism, noting that lower crude oil prices and a stable global environment are likely to drive growth. He added that the recent US elections seemed to provide clarity, which may help ease market volatility and boost investor confidence.
Sources
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