Four Years of Modi Govt: Stocks surge over 41% since May 2014, investors richer by Rs 72 lakh crore

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In first four years of Narendra Modi government, the Sensex surged over 41 per cent, making investors richer by Rs 72 lakh crore. 

After Narendra Modi-led NDA government took over the reins of power in May 2014, the index gained 10,207.99 points or 41.29 per cent with the BSE blue chip index hitting an all-time high of 36,443.98 on January 29 this year.

The overall stock market grew from little over Rs 75 lakh crore to more than Rs 147 lakh crore in four years of Narendra Modi government. 

The market capitalisation (m-cap)of BSE-listed companies stood at Rs 1,47,28,699 crore at close of the trade on Friday. 

 “The four years of Modi government have been a roller coaster ride with its share of ups and downs. The performance of the Modi government has been remarkable in terms of planning and execution of some policies whereas the macroeconomic numbers aren’t all that rosy,” Jimeet Modi, Founder & CEO, SAMCO Securities & StockNote, told PTI.

The Sensex on Friday ended the day with a gain of 261.76 points or 0.76 per cent at 34,924.87.

“The overall gain in the Sensex during the four years of the Modi government is only around 40 per cent. This is not very impressive return. The main reason for this mediocre performance has been the tepid earnings growth of the last four years. However, this is set to change with a smart pick up in earnings growth expected in FY 2019,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services Ltd.

“As the Modi government enters its last year in office the macroeconomic situation presents a mixed picture. A major challenge has suddenly erupted in the form of spiralling crude. Crude at USD 80 can play spoilsport. If this high rate sustains, it will worsen our fiscal deficit and CAD leading to higher inflation and weakening rupee. This will be a greater threat to the government than the challenge from a ‘united opposition’,” Vijayakumar added.

TCS is the country’s most valued firm with a market capitalisation of Rs 6,87,123.96 crore, RIL (Rs 5,83,972.22 crore), HDFC Bank (Rs 5,22,420.61 crore), HUL (Rs 3,41,064.80 crore) and ITC (Rs 3,31,895.80 crore) in the top five list.

At the BSE, 1,630 stocks advanced, while 1,004 declined and 150 remained unchanged, on Friday.

A total of 23 stocks ended with gains led by ONGC, Tata Steel, YES Bank and IndusInd Bank.

(With PTI inputs)

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