Nifty At 20,000 Tells Us World Is Eager To Invest In India, Says Ashish Chauhan

The Nifty 50 reached a key milestone by touching 20,000 for the first time in its history on Monday.

"Nifty hitting the twenty thousand mark tells us that the world is eager to invest in India," said Ashish Chauhan, managing director and chief executive officer of the National Stock Exchange.

The index's gains were primarily fueled by strong performances in the power, automobile, and banking sectors. Its previous record high was on July 20.

While China experienced a slowdown and the United States and Europe grappled with rising interest rates in the past year, India continued on its growth trajectory, making it an attractive investment destination amid shifting global dynamics, Chauhan said during celebrations at the NSE headquarters.

Traditional Indian investors, who have historically focused on real estate, fixed deposits, and gold, are now starting to allocate some funds to equity markets as well, he noted.

India's digital infrastructure played a key role in enabling the Nifty's ascent, according to the CEO. He emphasised on Nifty's performance, which has delivered returns exceeding 20 times its initial value, since inception in 1996. Such returns are unmatched globally, even in dollar terms, Chauhan said.

Chauhan highlighted the significant growth in NSE's investor base. The exchange now boasts three times the number of investors, compared to pre-Covid years, with 7.5 crore Indians connected, representing approximately 17-20% of all households in India, he said.

Chauhan advised young and new investors to maintain a long-term perspective and cautioned against engaging in derivatives trading without expertise. For those lacking the time or expertise for in-depth research, he recommends seeking guidance from professionals, such as mutual funds or portfolio managers, with the skills to analyze companies and provide sound investment advice.