Stock Markets in 10 Years of PM Modi: The new government led by PM Modi is about to complete 100 days. On this occasion, let us know how the stock market has performed not only in the last 100 days but also in the entire tenure of the Modi government. How did the policies of the Modi government take the stock market to a new record high? The BSE Sensex has increased from 24,000 to 83,000 in the last 10 years. However, the stock market started PM Modi’s third term with a huge decline. On the day of the Lok Sabha election results, there was chaos in the stock market after seeing BJP falling away from the majority. About Rs 30 lakh crore of investors were lost in a day. But then seeing the formation of the NDA government, the market made a comeback the very next day and now the Sensex has crossed the 83,000 level.
The BSE Sensex has given a return of more than 225% in the last 10 years. During this period, the index has travelled from 24,000 to 83,000 points. On 16 May 2014, when the results of the Lok Sabha elections were announced, the Sensex jumped 1470 points during trading and crossed the 25,000 mark for the first time. However, later at the end of trading, it closed at 24,121, up 216 points. Since then, the Sensex has gained such momentum that today it has reached close to 83,000 points. Just a day ago, on 12 September, the Sensex crossed the 83,000 level for the first time and touched a new all-time high.
During this period, let us take a look at the important milestones of Sensex-
– On 26 April 2017, Sensex crossed the 30,000 level for the first time.
– Then on June 3, 2019, it crossed 40,000.
– Sensex reached the level of 50,000 for the first time on 3 February 2021
– After this, on 24 September 2021, the Sensex reached 60 thousand for the first time
– Then on 14 December 2023, it touched the level of 70,000 for the first time
This year 2024 has also been exceptional for the stock market. On January 15, 2024, the Sensex touched a new high of 73,000 for the first time. Then on March 6, 2024, it crossed the level of 74,000. Then the very next month it reached 75,000. On July 3 this year, the Sensex crossed the level of 80,000 for the first time.
Many policies of the Modi government played their role directly and indirectly behind this spectacular rise in the stock market. The most important contribution was of digitalization. Today, investing in the stock market is a matter of minutes. Just take out your smartphone and download some apps, do digital KYC and then it’s done. Your demat account is opened. Due to this facility, the participation of retail investors in the stock market has increased manifold. So much so that now these retail investors have started competing with big investors. These retail investors have played the most important role in the rise in the stock market in the last few years.
Apart from this, due to its excellent governance, the Modi government has also brought government companies i.e. PSU stocks into focus. Today, these PSU stocks are leading rapidly in all sectors including infrastructure, retail, railways, defense and power. Market experts are bullish about these stocks in the future as well.
It is not that the stock market did not face any challenges during this period. Remember the period of the Corona epidemic, when the economy of the whole world including India had come to a standstill. Sensex and Nifty had fallen by more than 30 percent. Private companies had withdrawn from spending. But even at this time, the government once again emerged as a shield. The Modi government announced a huge package of 20 lakh crores. Manufacturing was promoted in the country through various schemes including PLI. The government supported the economy by increasing its expenditure on infrastructure. Due to this, the stock market was helped to recover and it not only touched its old level again, but also made a new all-time high.
The most important thing is that this boom in the stock market was not just linked to one or two sectors or themes, but profits were made all around. The midcap and smallcap indices even surpassed the Sensex and Nifty in terms of returns. Due to this, small investors made huge profits.
In this way, during the 10-year tenure of PM Modi, the Sensex has increased 3 times from 25,000 to 83,000. In these 10 years, the market cap of all the shares listed on BSE has increased manifold to around 5.4 trillion dollars. With this, India has now become the fourth largest stock market in the world after America, China, Japan and Hong Kong. Now it remains to be seen whether the Sensex is able to cross the much-awaited figure of 1 lakh in the third term of the Modi government or not.
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