Ashishkumar Chauhan, MD & CEO, NSE, says Nifty grew 24 times (1,000 to 24,000) in the last 29 years. In the next 29 years, probably by 2047, one can expect a similar jump although on a larger base, growth tends to be slightly slower.

Must feel very special, your baby is 29.
Ashishkumar Chauhan: Absolutely and naturally babies grow up and sometimes they grow up to be larger than their parents and Nifty has gone beyond what we had ever imagined when I was creating Nifty in 1995. We are very proud of what Nifty has done. In the last 29 years, gold has given around 7.7% returns on a CAGR basis and S&P 500 in dollar terms has given returns in the range of 9.9% on a total basis, that is, dividend plus the price rise. In the same time, Nifty has given a return of 11.9% on a CAGR basis in dollar terms. So, effectively, as I used to say, America required Warren Buffett and India required Nifty. It is shown in numbers and that is what we are very proud about.

Back in 1996, on the first day of closing, the Nifty was at 1,000 points. From there to 24,000 points as of today, what are we staring at in the next 30 years?
Ashishkumar Chauhan: Any index would grow on the basis of two parts, of which, one is inflation. When inflation goes up, asset prices go up by so much and the inflation part and then there is the growth part. India has been growing very rapidly vis-à-vis the rest of the world, and that is why Nifty’s outperformance vis-à-vis S&P 500 or almost all other indexes in the world.

If India continues to grow, which looks to be possible today than ever before because of the way India has adapted to technology and the way entrepreneurship is going up, demographics and technology put together India has a great chance to better what it did in the last 29 years in the next 29 years. So, probably by 2047, one can expect a similar size of jump from 1,000 to 24,000 – at least 24 times.A similar jump can be expected although on a larger base, growth tends to be slightly slower.

Nifty has given a return of 11.9% on a CAGR basis in dollar terms till now. For retail investors, the journey has been tumultuous. There have been many ups and downs as is the case with equity markets. What is the message for investors?
Ashishkumar Chauhan: It is like any relationship. You have to stay longer to enjoy it.