Benchmark index of stock market NSE NIFTY soared to its record highest level on Monday which was attributed to the results of the exit polls that have predicted NDA win.
Benchmark index of stock market NSE NIFTY soared to its record highest level on Monday which was attributed to the results of the exit polls that have predicted a return of the Narendra Modi led National Democratic Alliance government at the Centre. The market for the last few days had witnessed a dip in wake of an uncertainty in some quarters regarding the election results that will be declared on Tuesday.
The market sentiment got a major boost from the data released by the National Statistical Office (NSO) on Friday which said that India’s gross domestic product (GDP) for the January-March quarter of fiscal year 2023-24 (Q4FY24) was 7.8 percent. For the financial year 2024, the Indian economy grew by 8.2 percent, surpassing expectations.
The NSE Nifty climbed 733.20 points or 3.25 per cent to finish at 23,263.90 on Monday. It closed at 22530 points on Friday. After opening at a record 22967 points on 24 May, it had witnessed a downward trend while closing on 22957 points on 24 May, 22932 points on 27 May, 22888 points on 28 May, 22704 points on 29 May and 22488 points on 30 May, last Thursday.
However this trend was broken on Monday with the swift climb buoyed by the positive sentiments among the investors in wake of the exit poll predicting more than 350 seats for the Modi government.
The NIFTY benchmark is expected to go even higher post 4 June as investors, both individuals and investors, are as per market experts, banking on the return of the Modi government which will ensure continuity of economic policies that will not be dependent on the desires of local and regional elements which would be the case if the INDIA bloc comes to power.
An analysis of the past ten years data by the Daily Guardian from 1 May 2014 when it was clear that the Modi government was going to replace the Congress led United Progressive Alliance ten years rule at the center, the market has been on an upward climb, a trend that is unmatched among the global order.
This trend continued even during the covid 19 even as all other economies were tanking.
An analysis of the ten years old market data related to NIFTY shows that the benchmark has grown a staggering almost four times in the last ten year.
The market took five years to cover the journey from 6500 points to 12000 points. In the next five years, it went up by a staggering 11000 points to cross 23000 points.
On 1 May, the NIFTY was 6700 points. It crossed the 7000 points less than two weeks later and landed at 8000 points on 2 September.
For the benchmark to cross 9000 points, it took the market almost two and a half years. On 14 March 2017, it crossed 9000 for the first time in history even as it touched the landmark 10000 points on 27 July 2017, less than five months after touching 9000 points.
On 24 January 2018, it crossed the 11000 points for the first time and touched 12000 points in June 2019, days after the Modi 2.0 government was sworn in.
Due to the covid pandemic, in 2020 the NIFTY benchmark witnessed a sudden dip but still it continued to hover around 8500-9000 points, despite the global markets witnessing a massive downward curve.
Even as the effect of covid pandemic on the economy was revealing itself, the Indian market crossed 13000 points benchmark on 24 November 2020, within months of the lock down being lifted, which was due to the confidence in the financial decisions and economic policies that Modi and the officials at PMO had taken to protect the economy from the fallout of the once in a century pandemic. Less than 100 days later, it crossed the 14000 points mark on 4 January 2021.