A day after the domestic blue-chip index with 50 constituents crossed the 25,000 landmark, NSE MD and CEO Ashish Chauhan said if America has Warren Buffett, India has the Nifty 50.

Nifty has given superior returns than any other index even in dollar terms, Chauhan said. He was speaking at the 21st Annual Capital Markets Conference CAPAM2024 – Capital Market Reforms 2.0 For Viksit Bharat in Mumbai.

Chauhan compared the Nifty 50 to Buffett, who is also known as the ‘Oracle of Omaha’ as he is one of the most successful investors of all time. He is known for sustaining his investment for as long as he can. In fact, Buffett was once quoted as saying that his waiting period for any stock is ‘forever’.

On August 1, the Nifty 50 rose to 25010.90 (at closing) from the COVID-19 low of 7,511 in March 2020. This means, the index has made investors nearly 233% wealthier in a little over four years.

Reflecting on the increased interest in capital markets from traders and investors, Chauhan said that NSE gets 20 billion orders each day, that is, in six hours and 15 minutes.

“NSE is also getting orders from Andaman and Nicobar… We are not getting orders from about 30 odd PIN codes and most of these are airports where people don’t even stay for a day,” he said at the CAPAM2024 event. He further asserted that India has a chance to become rich before it becomes old.

He, however, cautioned that people should not trade frequently and explained that buying in the morning and selling in the evening is not an investment. He also pointed out that the markets regulator Securities and Exchange Board of India (SEBI) has also taken cognisance of increasing trading.

(As investopedia explains, investors generally seek larger returns over an extended period through buying and holding. Investing takes a long-term approach to the markets and often applies to such purposes as retirement accounts. Trading involves short-term strategies to maximize returns daily, monthly, or quarterly.)

Earlier on August 1, in an exclusive interview with CNBC-TV18, Chauhan noted that the Nifty 50 has delivered a remarkable 25x return over less than 30 years, with dividends potentially increasing this to 28,000 to 30,000 times the initial investment.

“Every 5,000 points, we try to cut the cake just to celebrate the achievement, which is collective, because an index number is actually a conceptual number where a lot of companies stocks are taken and one number is arrived at on a continuous basis. Nifty started at 1,000 on November 3, 1995. And so in literally less than 30 years, it has given returns 25 times plus of course the dividend put together it could be close to 28,000 to 30,000,” Chauhan said.

“So if you were putting ₹1,000 as an investment, today it would be almost 28,000 to 30,000 and in your hand, you will be having ₹25,000 and that’s the way index is explained,” he said.

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