Sensex From 25K To 75K; Facts Behind Rally In Stock Market In Last 10 Years

How Economy has changed during the last 10 years of PM Narendra Modi’s era? What are the key factors that led to the rally in stock market in last 10 years

On 9th April, the BSE Sensex touched the 75,000 mark, hitting a highest record of 75,124. Sensex rose by 25 percent over the past year. On 9th April, the combined market capitalisation of the BSE listed firms crossed Rs 400 lakh crore. Not only large caps but the BSE Midcap index went up by almost 67 per cent over the past year, and the Smallcap index went up by 65 percent.

How Economy has changed during the last 10 years of PM Narendra Modi’s era? Since 2014 domestic institutions have invested 40% more than foreign institutions, according to the Times Of India report.

Key Factors Behind Rally In Sensex In Last 10 Years?

• During the last 10 years of the Modi era, investors’ wealth measured by BSE’s market cap rose by 5 times.
• India’s moved from being a $1.7 trillion market cap economy to a $4.8 trillion economy now.
• Setting up the world’s fastest T+1 systems and fastest processing of IPO.
• Opening up of the market for small and medium enterprises, boost confidence of investors to invest in the Indian market.
• Eyeing the June 4th result, Lok Sabha 2024 election will be the key factor to decide market movement in upcoming months.
• In the third quarter of 2023-24, GDP growth was at 8.4 per cent, above all the forecasts.
• The National Statistical Office raised its expectations of growth for the full year to 7.6 per cent.

Stock Market Future

• The current momentum is expected to continue as RBI also projected the economy to grow at 7 per cent.
• Many corporations are expected to report strong earnings in the fourth quarter (January-March) in sectors like banks and auto manufacturers.
• At the global level  the central banks like the U.S. The Fed Reserve may ease policy rates.
• In India, considering the weather predictions, food inflation may reduce over the monsoon.
• Currently the core inflation has reduced to 3.4 per cent,  and if food inflation also reduces, the RBI’s monetary policy committee will cut rates.
• Markets have performed strongly during earlier pre elections periods.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice.)