Under the rule of PM Modi, the metal sector has given returns of more than 300 percent.
Former Prime Minister of the country Atal Bihari Vajpayee had famously said in the Parliament that “Governments will come and go, parties will be formed and disintegrated, but this country should remain the same.” This applies to generations, political ideologies and even the stock market. In the 150 year history of the stock market, the country passed from the hands of the British to the hands of the people of India. From 1947 till now, many Prime Ministers have come and gone in the country. But the stock market did not reduce its pace. The country’s stock market performed very strongly during the tenure of many Prime Ministers from Jawaharlal Nehru to Narendra Modi. If we talk about Narendra Modi’s tenure, investors have got returns of more than 200 percent in his 12-year tenure.
The special thing is that the metal sector and its related companies in the stock market have left no stone unturned in making the investors rich in these 12 years. Investors have made a lot of money due to the shares of companies like Tata Steel, Jindal and Adani. As India is progressing rapidly in the face of difficulties, its strong stock market is also progressing. Let us also tell you how much return the metal sector and its companies have given to investors.
Tremendous rise in stock market
Prime Minister Narendra Damodardas Modi was sworn in as the 14th Prime Minister of India on May 26, 2014. On May 23, 2014, a day before PM Modi took oath, the Sensex closed at 24,693, while the Nifty closed at 7,367. The market capitalization of all the companies listed on BSE was less than Rs 85 lakh crore. Almost 12 years later, since PM Modi took charge, the Sensex and Nifty have gained a whopping 199 per cent and 215 per cent respectively, and the market cap of all BSE-listed companies has seen an increase of Rs 375 lakh crore. In the present times there has been a huge increase. At present the market cap of BSE is around Rs 460 lakh crore.
Metal sector revolted
The metal sector remained at the forefront under the leadership of PM Modi. Since he took charge, the Nifty Metal Index has increased by a whopping 309 percent. This is followed by Nifty Financial Services and Nifty Auto, which have gained nearly 300 per cent in these 12 years. The widely tracked Nifty Bank index has gained 254 per cent, outperforming the broader Nifty 50 index. Other sectors include Nifty Pharma (222 per cent), Nifty IT (220 per cent), Nifty Realty (194 per cent), Nifty FMCG (171 per cent) and Nifty PSU Bank (107 per cent), which also gained strength. However, only one sector gave negative returns, and that is Media. The Nifty Media index has declined by 23% since 2014.
These companies made investors rich
If we talk about metal companies, some companies have given huge returns in the stock market in the last 12 years or rather during the Modi rule. If we look at the figures, Lloyd Metals gave a return of 32,757 percent to the investors. Till now JSW Steel has made investors rich and earned 905 percent. On the other hand, Tata Steel also did not lag behind in providing income to investors and gave a return of 317 percent during Modi rule. Whereas Jindal Steel gave investors an income of 273 percent in 12 years. At the same time, government steel company SAIL has given investors 101.33 percent growth in 12 years.
Tremendous performance of midcaps
One thing that clearly emerges is the excellent performance of midcap stocks during this period. There was a huge rise of 473 percent in Nifty Midcap 100 index, which led to huge profits on Dalal Street. During this period, Nifty Midcap 50 index increased by 434 percent. After PM Modi assumed office, Nifty Smallcap 100 index increased by 255 percent. This is less than the midcap, but it is more than the 215 percent gain in Nifty 50 during the same period. It is important to note that the categorization of midcap, smallcap and largecap keeps changing, and the category of many stocks may change over time due to fluctuations in market cap.
How did the stock market perform during the tenure of which PM?
- Prime Minister Narendra Modi is the first Prime Minister of India who was born after independence in 1947. They came to power again after the general elections of 2019 and 2024. Since his assumption of office, Sensex has given a CAGR of about 10 percent.
- The special thing is that between 2004 and 2014, when Manmohan Singh was the Prime Minister, the Sensex rose by almost 400 percent and it increased from 4,961 to 24,693. According to a report by portfolio manager EA Sundaram, during the 10-year tenure of Manmohan Singh, the Sensex gave a CAGR of about 18 percent.
- During the six-year tenure of Atal Bihari Vajpayee from March 1998 to May 2004, the Sensex gave a CAGR of 3 per cent, and during his last short tenure of 13 days in May 1996, it was 2 per cent. Between June 1991 and May 1996, P.V. During almost five years of Narasimha Rao’s tenure, the benchmark index gave a CAGR of 24 percent.
- During Rajiv Gandhi’s tenure as Prime Minister, the Sensex gave a CAGR of about 21 percent, whereas during the 11-month tenure of VP Singh, it was 73 percent. According to analysts, during the four-year tenure of Indira Gandhi as Prime Minister from July 1980 to October 1984, the Sensex gave a CAGR of 20 percent.
