Investors should not panic amid global market volatility triggered by tensions in the Middle East, Securities and Exchange Board of India (Sebi) chairman Tuhin Kanta Pandey said on Monday.
“Amid such uncertainty, India’s domestic fundamentals have continued to remain strong, providing resilience. It is important not to panic at this moment, but to remain calm amidst this storm,” Pandey said at a National Stock Exchange of India (NSE) event marking 30 years of the Nifty 50 index.
“We are also meeting at a time when global markets are experiencing turbulence and volatility arising from the Middle East war – choking off vital shipping lines, triggering oil & gas supply and price shocks,” said the Sebi chief. “Like rest of the globe, India too is deeply impacted by such developments.”
Pandey’s remarks come amid heightened geopolitical tensions after military strikes by the United States and Israel on Iran starting late last month triggered a broader regional conflict and retaliation by Tehran. Iran moved to shut the strategic Strait of Hormuz, a narrow waterway between Iran and Oman that serves as one of the world’s most critical energy shipping routes.
India, which meets about 80% of its domestic fuel demand through imports, is facing both a potential supply squeeze and rising crude prices.
Impact on markets
The escalation has also jolted equity markets worldwide. Stock indices across Asia have declined in recent sessions as investors reassessed risk amid surging energy prices and fears of wider conflict in the Gulf.
Nifty 50 and Sensex closed about 1.7% lower on Monday as crude oil prices surged past $100 a barrel. By the close, the sell-off had wiped out about ₹8.47 trillion in market capitalization of companies listed on the Bombay Stock Exchange.
“The Nifty itself has navigated several such phases in the past 30 years and yet, over the long run, it has continued to reflect the strength and resilience of India’s growth story,” the Sebi chief said.