In historic development on the 9th of April, the Sensex crossed the 75,000 points mark for the first time and the Nifty 50 opened above a new record high of 22,700 mark.
Up 382 points or 0.5%, the BSE Sensex opened at its all-time high of 75,124.28. In keeping with this, the Nifty 50 opened at 22,768.40 as opposed to 22,666.3 in the prior session. In May 2014, the 30-share Sensex crossed the 25,000 mark, and on January 21, 2021, it crossed the 50,000 mark.
The historic milestone aligned with Prime Minister Narendra Modi-led NDA government at the Centre for the last ten years. When Narendra Modi first became Prime Minister in 2014, the Sensex celebrated the historic verdict by surging roughly 1400 points to exceed the 25,000 mark. Now, ten years later, as PM Modi is vying for a third term in the forthcoming Lok Sabha Elections of 2024, the Sensex has crossed the landmark 75,000 mark.
The massive breach occurred just one day after the market valuation on the Bombay Stock Exchange surpassed Rs 400 crore.
Notably, a TOI report says that investors’ wealth has increased nearly five times over the past ten years.
On Tuesday morning, the market capitalisation of the BSE-listed companies was 401.82 lakh crore, which is the entire value of all of their listed shares. On Monday, the overall market capitalization of BSE businesses reached Rs 400.86 lakh crore, surpassing the Rs 400 lakh crore threshold. These companies added Rs 100 lakh crore to their market capitalization in a period of nine months. In July 2023, the BSE m-cap surpassed Rs 300 lakh crore.
According to reports, the top 10 Sensex gainers in 2024 who drove the Sensex rally to 75000 were Reliance Industries, Tata Motors, Mahindra & Mahindra, Sun Pharmaceutical Industries, Maruti Suzuki, State Bank of India, Bharti Airtel, NTPC, Power Grid Corporation of India, and Tata Steel.
The main laggards in this regard were HDFC Bank, Hindustan Unilever, Kotak Mahindra, Titan, Asian Paints, IndusInd Bank, Nestle, UltraTech Cement, Infosys Wipro, ITC, etc.
Economic growth, fastest settlements system, fastest IPO processes and more: Last decade under Modi rule was a boon for the Indian stock market
Over the past ten years, India’s economy has grown from a $1.7 trillion market cap to a $4.8 trillion one. It has also established one of the fastest settlement systems in the world (T+1), one of the quickest initial public offering (IPO) processes involving both retail and institutional investors, and the most active derivatives trading system in terms of the number of contracts.
Industry veterans assert that all of these factors, along with a market structure that is gradually allowing small and medium-sized businesses to list on the bourses at a fair price and the emergence of retail investors as a significant investing group (through the mutual fund route), give every investor confidence to place their money in the Indian market.
The chief investment officer of Axis Securities PMS, Naveen Kulkarni, stated that although it was predicted that benchmark indices would hit a new record high in FY25, the pace of growth has been speedier than expected.
Meanwhile, Arvinder Singh Nanda, senior vice president at Master Capital Services lauded the Modi government for its policies and reforms for creating an environment conducive for market growth.
“Government policies and reforms have played a crucial role in fostering a stable environment conducive to market growth. Measures aimed at stimulating the economy, coupled with a focus on digitalization and infrastructure development, have attracted substantial investments,” Nanda was quoted by Financial Express.
On May 23, 2019, with Narendra Modi and the BJP continuing to hold sway at the federal level, the index broke the 40,000 mark. In just 35 sessions, the Sensex leaped from 45,000 to 50,000.
As OpIndia reported back then, the highest gainers in the trade in the benchmark index at that time were IndusInd Bank, SBI, L&T, PowerGrid, Yes Bank, Kotak Bank, ICICI Bank, RIL, HDFC, Bharti Airtel and Axis Bank, rallying up to 7 per cent.
Be it pro-business reforms, infrastructure projects, increased financial inclusion, and political stability, the Narendra Modi-led government has delivered on all fronts thus leading to market growth. In addition, PM Modi has positively influenced the Indian stock market. This warrants recalling how PM Modi in August last year encouraged investors to invest money into Indian PSUs with the phrase “Daanv laga dijiye”. Since then, 22 PSUs’ stocks have performed exceptionally well, increasing their combined market value by 66% to ₹59.5 lakh crore.
Over the past ten years, India under PM Modi’s leadership has risen from the list of the world’s fragile five economies to the fifth largest, and it is currently on track to become the third-largest overtaking Germany.