SEBI Chairman Tuhin Kanta Pandey says volatility has increased across global financial markets due to the ongoing conflict in West Asia, but Indian stock markets have the ability to absorb different types of shocks. Speaking to reporters on the sidelines of a Regional Investors Seminar for Awareness, Pandey said crises in one region affect the rest of the world, particularly through disruption to oil supply chains and global oil prices. He added that such disruptions raise inflation risks and can trigger spillover effects and “second-order” impacts on other economies.
Pandey said the resilience of Indian markets allows them to handle these shocks, and that once the external disturbances end, markets tend to return to their normal trajectory. He also acknowledged some foreign portfolio investment outflows since September 2024. However, he said domestic investors have retained their confidence, supporting market stability despite global swings. Both accounts emphasize interconnected global markets and describe the West Asia conflict primarily through its impact on energy prices and broader macroeconomic risks.
