Sensex at 40 reflects Indian market evolution from manual trading to global integration: Sebi chairman

As India’s heartbeat index, the Sensex marks 40 years after its launch, the idea behind it was forward-looking at a time when the economy was largely inward-looking and market participation was limited and manual, Sebi Chairman Tuhin Kanta Pandey said on Friday.The index evolved along with the economy as India liberalized and integrated with global markets, he recalled, adding that the changing composition of Sensex reflected the rise of private enterprise, shifts from traditional industries to services, finance and technology, and deeper linkages between domestic markets and global capital.

“When the Sensex was introduced, the Indian economy and markets were very different from what we see today. Trading was manual, market participation was limited and the economy was relatively inward-looking. Yet the idea behind the Sensex was forward-looking to create a transparent, representative and credible benchmark that reflected the performance of leading companies in the economy,” said Pandey.Over the past four decades, Sensex’s rich institutional history has marked a defining moment in the evolution of Indian capital markets, Pandey said.

He was speaking at a BSE event celebrating 40 years of the Sensex, which was launched in 1986.

Pandey termed it remarkable that a few companies that were part of Sensex at its inception are still part of the Sensex even today.

“Over four decades marked by liberalization, technological disruption, regulatory evolution and global shocks, these companies have adapted without losing sight of their core principles. Their continued presence is no coincidence. It reflects sustained attention to governance, competitiveness and long-term value creation. In many ways, this continuity reminds us that while markets respond to cycles, sustainable value is built over generations,” the Sebi chief said. The Bombay Stock Exchange (BSE) is one of the oldest stock exchanges in Asia and among the few institutions in the world. who have witnessed global crises such as the world wars, the Great Depression of 1929, the oil shock, the bursting of the dot-com bubble, the global financial crisis and the more recent COVID-19 pandemic, Pandey points out.

Pandey said the next phase of market development will be determined not only by scale but also by quality and sophistication.

Outlining the regulator’s priorities, he said Sebi will continue to strengthen corporate governance standards, promote sustainable financing and long-term value creation.

While innovation is encouraged, investor protection will be central to Sebi’s priorities, and the market watchdog will ensure responsible use of technology and data in market transactions and supervision, he said.

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The next challenge for Sebi lies in anticipating risks before they surface as markets evolve with emerging technologies, especially artificial intelligence, Pandey said.

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