India's Capital Markets Show Resilience Amid Global Volatility

SEBI Chief Says Indian Capital Markets Growing Deeper and More Resilient Amid Global Volatility​

New Delhi, March 14: Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey on Saturday said India’s capital markets are steadily becoming deeper, more diversified, and resilient despite continued global uncertainties that are driving volatility across financial markets.

Speaking at a media event in New Delhi, Pandey advised retail investors to avoid reacting impulsively to short-term fluctuations and instead adopt a patient approach to investing.

“For retail investors, the best strategy would be to remain patient,” Pandey said, noting that markets have historically recovered after major global disruptions.

Indian Markets Expanding in Scale and Strength​

Pandey said the Indian capital market ecosystem has grown significantly in recent years in terms of scale, diversity, and overall stability.

“They are becoming deeper, more diversified, and more resilient. But as markets grow in scale and complexity, they also become more closely connected to global developments. And that brings us to the changing landscape in which today’s market operates,” he said.

The SEBI chairman highlighted that the increasing integration with global financial systems means domestic markets are more sensitive to international developments.

Geopolitical Tensions and Energy Shocks Driving Market Uncertainty​

Addressing the broader global environment, Pandey pointed to geopolitical tensions, technological disruptions, and energy supply shocks as key factors contributing to current market uncertainty.

“Geopolitical tensions are shaping economic relationships. The conflict in the Middle East has massively disrupted energy supplies. Inevitably, capital markets have been severely impacted,” he said.

He noted that the rapid spread of information across economies has made volatility a defining feature of modern financial markets.

However, Pandey emphasized that such periods of turbulence are typically temporary.

“One lesson becomes clear: periods of extreme volatility don’t last forever,” he added.

Technology Transforming the Pace of Financial Markets​

Pandey also highlighted structural shifts taking place in global financial markets, particularly the growing role of technology.

He said the increasing adoption of algorithmic trading, artificial intelligence, and advanced data analytics is significantly accelerating the speed at which markets function.

“Algorithmic trading, artificial intelligence, and advanced data analytics are accelerating the speed at which markets operate,” Pandey said.

At the same time, he cautioned that the rapid dissemination of information can also amplify risks.

“News travels quickly, opinions travel even faster, and most importantly, markets today react almost instantly to the narratives,” he said.

SEBI Focused on Stability and Investor Protection​

Pandey said policymakers must ensure that the increasing speed of market operations does not undermine financial stability.

Looking ahead, he stated that the next phase of India’s economic growth will require deeper bond markets, stronger institutional participation, and continued technological innovation.

The SEBI chief also highlighted regulatory steps taken by the market regulator to safeguard investors. These include monitoring misleading social media content and strengthening surveillance mechanisms such as the PaRRVA system to detect potential market manipulation and misinformation.