SEBI Chairman Tuhin Kanta Pandey revealed that retail investors and domestic mutual funds collectively own around 36% of the free float market capitalization of Nifty 50 companies. Speaking at the 30th anniversary celebration of the Nifty 50 index at the National Stock Exchange (NSE), Pandey emphasized the index’s alignment with India’s economic growth over the past three decades, with a significant increase in domestic participation.
India now boasts more than 140 million individual investors, indicating a notable shift of household savings towards the capital markets, according to the SEBI Chairman. Pandey noted the emergence of new industries and the expansion of existing ones, such as information technology, financial services, telecommunications, consumption-driven businesses, and various new-age sectors over the years.
Highlighting the financial sector’s growing influence, Pandey mentioned that its weight in the index has surged from approximately 21% during its launch to nearly 38% as of February 2025. The market capitalization of companies listed on the NSE has surpassed 130% of India’s GDP, a significant increase from the 35% recorded in FY 1995.
During the event, S Gurumurthy, an Independent Director at RBI, commended India’s market growth, attributing it to robust institutions, regulatory supervision, and a culture of prudence, distinguishing it from other countries where market evolution primarily relied on financial innovation. Gurumurthy highlighted the harmonious coexistence of growth and stability within the Indian market framework.
The Nifty 50 index, designed to mirror the performance of 50 large and liquid companies across vital sectors of the Indian economy, has yielded a total return of 12.74% since its inception in 1995.
