Wion World Pulse | Is it right time to invest in stock market now? NSE CEO Ashish Kumar Chauhan says...

Managing Director and CEO of the National Stock Exchange (NSE), Ashish Kumar Chauhan, advised investors on Wednesday (Mar 18) to stay calm during market volatility and focus on long-term investing, highlighting the benefits of systematic accumulation of equities. He was speaking at Wion World Pulse summit. Reacting to a question on whether it is the right time to invest in the stock market, Chauhan refrained from making direct market predictions, but pointed to historical trends.

"I'm mainly a regulator, so I don't have opinions on where the prices go up or down. But broadly speaking, because of what I call the short-term nature of the wars and other things, people do get panicked, they sell things and then it happened during COVID times. In March 2020, things started going bad for the markets, it went down by 40 per cent. And then whoever bought today, even today's numbers are like 5x, 10x increase, right? So during panic time, if you are able to think through well, if you have cash available, why not?" he said at the WION World Pulse in New Delhi.

When NSE MD & CEO was asked whether the systematic accumulation of stocks was a good choice for somebody who's already in the market, he responded that money invested 30 years back would have tuned into 30X. He added that if anyone stays systematic every year, and put little money in the stock market can give returns of around 10-12 per cent.

He said, "Now I'm taking from a perspective of somebody who understands the stock market. Again, over 30 years, if you look at Nifty, when it started in November 3, 1995 was the base at 1000. Today, it's close to 25,000. And if you take the dividends which companies have given in that index, it could be close to 30,000. So 1,000 rupees, if you're invested around 30 years back, today, it would be 30,000. So 30x times, if you stay systematic every year, if you put in little money, every month, you get returns of around 10, 12 per cent. So I was speaking at say, European conference last year, and I was giving the price earnings ratio of India, which is like somewhere around about 20."

"And they couldn’t believe it, because they are getting price-to-earnings ratios of around two or three, while many European and American companies are raising funds from India. We have also seen Korean companies like LG, Samsung, and Hyundai raise billions of dollars from India. This puts India in a unique position, it is growing, has strong demographics, rising demand, and rapid technology adoption. That’s why, in my view, if you keep investing small amounts regularly, say every month, you can benefit in the long run. The key is not to panic. One of the biggest mistakes people make is reacting negatively when markets turn volatile and withdrawing their investments. That’s where we go wrong. Don’t panic, that’s the most important lesson."

Technology-oriented countries to grow faster

Highlighting India’s broader economic position, Chauhan said the country remains well-placed amid global uncertainty and volatility.

He also gave broader views on India's adoption towards technology noting that technology-oriented countries are likely to grow the fastest.

“India continues to be among the most promising long-term equity markets in the world. Despite the current global volatility, it remains a bright spot. I believe the world will continue to become more volatile due to imbalances in geopolitics, geoeconomics, societies, and even religions. When problems cannot be solved through dialogue, countries often resort to other means, which do not truly resolve underlying issues. At the core of many of these changes is technology. Most global imbalances arise from how technology evolves, and nations compete to gain advantage in areas like AI, oil, and other strategic sectors," he said.

"This is where India holds a unique advantage. Countries that adapt to technology grow faster. Younger nations tend to have stronger demand. And countries that are large, young, and technology-oriented are likely to grow the fastest. For instance, Japan already has an ageing population, and China has also aged rapidly due to its one-child policy. In contrast, India remains young, technology-driven, and demand-rich, " Chauhan added.

He stated that while there are other young regions, not all of them are equally focused on technology.

Africa is still stabilising but has the potential to emerge as a future powerhouse. Europe, on the other hand, is ageing, and even the United States is experiencing demographic shifts that could slow growth unless it continues to attract talent.

In contrast, India is expected to remain young, with strong demographics and rising demand. Younger populations tend to drive higher consumption, spending more on devices, goods, and services, unlike older populations.

"This combination of demand and technological orientation is crucial. Whether it is drones, biotechnology, or AI, India has one of the largest user bases and a vast pool of talent. We produce millions of engineers every year—more than the population of many countries. For me, this is India’s moment. The country is at the right place at the right time and is now part of the global technology core. India’s time has come, and those words will resonate," NSE CEO further added.