‘1 in 5 Indian households has direct exposure to stock markets’: Ashishkumar Chauhan

At a time when the world faces challenges in the form of trade tensions, slowing growth in advanced economies, and geopolitical risks leading to economic hyperinflation, India’s growth story remains strong, said Ashishkumar Chauhan, MD and CEO, National Stock Exchange, at the 16th Capital Market Conference organised by ASSOCHAM.

Speaking on the theme “Growth Catalyst for Viksit Bharat @ 2047”, Chauhan said the country’s capital market mirrored the strength and growth of the broader economy, reflecting the country's evolving economic landscape. The NSE chief added that the market capitalisation of listed firms has surged 120 times in the past 30 years. Today, it stands at over Rs 440 lakh crore, or $5.1 trillion. The market valuations of NSE-listed companies have increased six-fold in the past 11 years since the Modi government was formed.

He further said that the m-cap of listed companies now stands at nearly 1.6 times the size of India's banking sector, and that highlights the growing significance of capital markets.

While sharing IMF projections, Chauhan also added that India stands out as one of the fastest-growing major economies, with GDP growth projected at 6.2% in FY26 and 6.3% in FY27. On the other hand, global economic growth is expected to ease from 3.3% in 2024 to 2.8% in 2025, with a modest recovery to 3% expected in 2026.

“These figures reflect more than a cyclical rebound—they highlight the depth, resilience, and dynamism that characterises India’s ongoing economic journey,” Chauhan said.

Commenting on India’s primary market, Chauhan said IPO fundraising in the calendar year 2024 was around Rs 1.67 lakh crore, about $19.5 billion, from 268 public offers, which is among the highest raises by any exchange in the world. “In contrast, Singapore and the UK have been losing listed companies for the last 20 years on a YoY basis,” he said.

Looking ahead, Chauhan believes that the potential for MSME listing on bourses is substantial. “To sustain investor trust, it is essential to attract high-quality companies with transparent disclosures, robust financials, and strong corporate governance and resilience,” he said, adding that India's capital markets have transformed into a powerful engine for household wealth creation, underpinned by rising investor participation and robust regulatory safeguards. At present, NSE has a 11.3 crore unique investor base.

“1 in 5 Indian households has direct exposure to stock markets,” he said. Chauhan also highlighted that Indian investors have now become a core part of India’s capital market, with their direct ownership via mutual funds and listed companies rising from 10.9% in FY14 to 18.2% in FY25.

“The rise in investor participation has led to substantial wealth creation, with estimates suggesting that Rs 46 lakh crore has been added to household equity values during the last five years from FY21 to FY25. This behavioural step is mirrored in mutual fund participation as well. SIPs are becoming a popular route for long-term investing,” he said.