As it turned out, the “Suit-Boot ki Sarkar” has finally closed to finish its 4-years in office. Tomorrow on May 27, Modi Government will finish its four years. Throughout its journey, Modi Government faced many challenges from the opposition side, foreign side, and many internal matters which needed to resolve. But, no matter who is against this but there are tonnes of proof that Modi Government changed the face of the country. If we talk about the accomplishments then the Modi government came too far by providing a corruption-free management under Narendra Modi’s leadership. However, there were certain allegations but none of them has a solid proof. On the contrary, we’ve seen a government which was free from corruption more than any other. The next big thing we saw under Modi’s leadership was the elimination of black money from the country and demonetization. It is debatable that people suffered a lot in demonetization period but as they say, “To fight the unthinkable, you have to be willing to do the unthinkable”. To most people, these achievements can be untrue since there are no stats to show the improvement within these sectors. But, it is still insignificant. People who believe in Modi government knows the improvement we’ve seen in different sectors.
Anyways, let’s not talk about the allegations or people’s review on this matter. What we are is to see the change Indian Market undergoes in last four years under Modi government. And this time, we will show the exact stats on any major fall or rise which happened under Modi government. During it’s the journey of 4years, the Modi government focused on the economic governance for growth. The result, the actions were taken by Modi government benefited the digital participants, investors, and traders.
In fact, the benchmark indices hit a record high in the year 2018 and plan to reach a new level next year. It becomes the historic moment for Dalal-Street when the total market capitalization of all BSE-listed companies rose by over Rs 62 lakh crore in the last four years. In the currency year 2018, the market cap of Bombay Stock Exchange (BSE) recorded on May 25 rose to Rs 147 lakh crore which was Rs 85 lakh crore recorded on 26 may 2014.
Movement of Sensex & Nifty
Under the Modi government, the Nifty and Sensex has many ups and downs like a roller coaster ride. The S&P BSE Sensex recorded to levels above 34K in the year 2018 which once was at below 25K recorded on May 26, 2014. It clearly indicates the gain of more than 10K points.
On the other side, the Nifty rose to 10,605 on May 25, 2018, from the levels of 7,359 recorded in May 2014.
By seeing the rise in SENSEX and NIFTY levels and on comparing with the levels recorded four years ago, it is clear that under the Modi government the points gain are of above 40 percent in both cases.
Smallcap Index in Last 4 Years
As most investors are aware of, small-caps tend to do better in rising economy and rallies in a bullish market. Under the Modi government, the smallcap stocks rallying for 3 consecutive years and come under pressure in this year which stopped the winning momentum of smallcap stocks. But, during the 4 years, the S&P BSE Smallcap index rose nearly 90 percent and around 377 stocks under the companies like Minda Industries, Capital Trust, TVS Electronics, IFB Industries, Rushil Décor, KEI Industries, Avanti Feeds, and HEG rose 100-6000 percent in the same period.
Given the current rose in smallcap stocks, we can say that more investors will be willing to invest in the smallcap stock funds.
Midcap Index in Last 4 years
When Prime Minister Narendra Modi assumed the office with the expectation of a comeback in economic growth, around 38 companies returned 100-600 percent in the last 4 years. These companies names are like Dalmia Bharat, Natco Pharma, TVS Motor Company, Biocom, Rajesh Exports, 3M India, Ashok Leyland, Page Industries, NBCC, and IIFL Holdings etc.
Till the end of 2017, the midcap index performed well and doubled since 2014. But, it came under heavy pressure in last five months of this year, down by falling rupee against dollar, sharp selling by foreign institutional investors (FIIs) and market regulator SEBI’s rearrangements of mutual fund schemes.
Also, the midcap faced three large round of corrections in which the expert analysts advised investors to go for the companies which have done well. Investors should go to the companies which keep showing revenue and PAT growth.
Movement of Crude Oil
According to some, the Modi government has been lucky on the monsoons and oil front in its 4 years period. But, that’s not a luck! Under Modi government, the gross domestic product grew to 7.3 percent in the last four years. However, it is slower than the 7.6 percent cloaked under the UPA regime. Well, 7.3 percent may not consider as an improvement if compared with the previous decade, but time has changed a lot.
If the Modi government is able to bring the gross domestic product close to the good days then it will really consider as an improvement in the Indian commodities market.
Movement of Rupee
Well, the currency market is the sector where the Modi government hasn’t much to show. In fact, the rupee has been depreciated around 15 percent in the last four years. The rupee moved from Rs 58.72 against the dollar on May 26, 2014, to Rs 67.75 as on May 25, 2018.
A falling rupee depletes FII’s dollar-denominated returns. But, it is not the exceptional case. Even in the past, there have been several instances of currency depreciation eating away the good part of FIIs earnings.
If it keeps going then the chances of the current level go higher towards the 70 mark by the first quarter of next year.
Note: All information & data provided in this article is for the educational purpose as well as to give general information on the finance & economy, not to provide any professional advice or service. Views & opinions are not biased against the company and do not affect any official policy or any other agency, an organization within the content.