Nifty 50 at 30: NSE Hits $5 Trillion Market Cap, SEBI Eyes AI Oversight

Highlighting India's rise to becoming the fourth-largest capital market in the world, Chauhan noted that the index is no longer just a financial metric but a "stock of the nation."

He emphasised the scale of wealth creation, stating, "Since April 2020, rising equity participation has contributed to an estimated 57 lakh crore increase in household equity wealth, highlighting the growing role of capital markets in India's financial ecosystem."

Reflecting on the evolution of the Indian economy, Chauhan pointed out how the Nifty 50 has shifted from being dominated by industrial materials to being led by the services and financial sectors.

"The index has moved from being relatively materials and consumer-led in the mid-'90s to becoming more financials-driven and diversified, mirroring the deepening of financial markets and the rising importance of services-oriented sectors," Chauhan explained.

The NSE chief also spoke about the democratisation of investing across India, revealing that participation now spans 99.85 per cent of the country's PIN codes.

With 12.7 crore unique investors, Chauhan highlighted that one in every four Indian households now has exposure to the capital markets.

He also highlighted the inclusive nature of this growth, stating, "Women now constitute one fourth of all investors, reflecting the growing democratisation of equity markets and their emergence as an important instrument of household wealth creation."

Addressing the long-term value provided to investors since the index's inception in 1996, Chauhan noted that the Nifty 50 has navigated dot-com crashes, the 2008 financial crisis, and the COVID-19 pandemic to deliver consistent wealth.

He credited the resilience of the Indian corporate sector for an annualised return of 12.7 per cent in Rupee terms over three decades.

"In that sense, the Nifty 50 is not merely a market indicator. It is an institutional bridge connecting India's savers, its enterprises, and global capital," Chauhan remarked, adding that the index remains a "transparent rule-based benchmark trusted by investors, institutions, and policymakers alike."

Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey also attended the event as the Chief Guest

He noted that while global markets are experiencing "turbulence and volatility arising from middle-east war," India's domestic fundamentals remain a source of strength.

"It is important not to panic at this moment, but to remain calm amidst this storm," Pandey advised, asserting that the Nifty has historically reflected the "strength and resilience of India's growth story" through similar cycles of uncertainty.

Pandey highlighted the deepening maturity of the Indian market, pointing out that market capitalisation has surged to exceed 130 per cent of the nation's GDP, a massive leap from 35 per cent in 1995.

He credited this growth to a shift in how Indian families manage their finances, noting that there are now over 140 million unique investors. "Individuals and domestic mutual funds together now hold about 36% of the free-float market capitalisation of Nifty 50 companies," Pandey stated, highlighting the significant role of domestic capital in stabilising the market.

He also revealed that SEBI is utilising advanced tools to monitor unauthorised activities and corporate claims to protect the millions of new entrants in the market.

"At SEBI, we are strengthening our supervisory capabilities through internally developed tools such as SEBI Sudarshan--a real-time scanner for surveillance of unauthorised digital activity, and SEBI R(AI)DAR--an AI-driven system for reviewing advertisements," Pandey confirmed, emphasising that robust oversight is essential as the market becomes "larger and more complex."

- ANI