New Delhi: The Managing Director and CEO of the National Stock Exchange (NSE), Ashish Kumar Chauhan, asserted on Monday that the robust fundamentals of stock exchanges remain unaffected by the ongoing geopolitical situation in the Middle East. He expressed confidence in the resilience of the Indian economy, stating that it would not experience any significant impact.
Chauhan highlighted India’s effective management of its economy amidst global challenges over the past couple of years. He accepted that in the modern interconnected world, countries are heavily influenced by a variety of global events. However, he anticipates no substantial impact this time unless the situation between Iran and Israel deteriorates.
Chauhan acknowledged that geopolitical tensions in the Middle East could influence oil prices, which is relevant for India as it imports approximately 85% of its crude oil primarily from this region. Despite this, he pointed out that India’s total service exports and remittances are in a very good state, enabling the country to compensate for any trade deficit.
The NSE CEO highlighted the growth of India’s foreign exchange reserves, which reached a record high of $648.562 billion, according to the Reserve Bank of India (RBI). This is a testament to the resilience of India’s economy, Chauhan stated.
Chauhan further mentioned that India successfully navigated its economy during the Russia-Ukraine conflict.
Despite Chauhan’s optimistic outlook, both the Sensex and Nifty 50 indices experienced a decline of over 1% on Monday, reaching two-week lows.
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