The country’s PM Narendra Modi’s tenor has given a return of 240 percent in the stock market.
Narendra Modi, who is currently completing his third term as the Prime Minister (PM) leader of the country, turned 75 on 17 September. There have been many important developments in the Indian stock market during his tenure. This is the reason that during this time there has been a tremendous rise in the stock market. Prior to his first term, the market hopes of reforms were in full swing, but the level of compounding has been more than expected. From the end of May (26 May, 2014), when he was sworn in, today, by September 2025, the Nifty and Sensex have increased almost four times.
If we talk about the Nifty, then the figure has increased from around 7,360 to currently crossing 25,100 levels. This means that during this time the Nifty has seen a rise of 240 percent. On the other hand, the Bombay Stock Exchange’s major index Sensex was at 24,690 levels and has now reached above 82,000. During this time, the Sensex has seen an increase of about 235 percent.
Return equal to American market
The boom in the main indices has already made India equal to the world’s largest stock market. During this period, the S&P 500 index has also increased by about 245 per cent, while the Sensex and Nifty have left Dow Jones behind, which has increased by 175 per cent during this period. But for the Indian stock market, the real story is in its broker aspect.
Like the S&P 500, the BSE 500 has given a return of about 288 per cent, while BSE 500, while BSE Midcap and BSE Smallcap Index are really isolated. The BSE Smallcap index has jumped 491 per cent, while the BSE midcap index has seen an increase of more than 435 per cent.
Invaset PMS business head Harshal Dasani said in Mint’s report that this means that money creation was not limited to some big names – India’s Boddar Market performed well on a large scale. Comparatively, Dow Jones rose from 16,717 to 45,883, rose 174.6 per cent and S&P 500 increased by +243.9 per cent to 1,923 to 6,615. Thus, India’s broader index has achieved the strongest global equity compounding rate in the last decade. Although the Indian stock market is backward in the current year in the current year, its return is more than the index. The MSCI EM index has increased only 27 percent in 11 years.
The main reasons for the stock market boom?
Modi government’s policy, increasing participation of investors and improvement in capes, have been the main reasons for the stock market. From reforms like GST, IBCs to recipiousness and direct benefit transfer of public sector banks, the government focused on improving efficiency and financial inclusion.
Apart from this, focusing on Capex also promoted the growth of listed companies like Railways, Infra and Defense. In FY 2026, the budget has allocated Rs 11.11 lakh crore (3.4 percent of GDP) for capex in the budget.
Increase in retail participation, especially since the Kovid-19 epidemic, has also been a motivational power for the stock market. According to the Economic Survey, the participation of investors has been contributed to the growth of the secondary market, in which the number of investors has increased from 4.9 crore in FY 20 to 13.2 crore till 31 December 2024.
Auto, energy shares increase higher
Modi’s policy priorities – repairing bank balance sheet, infrastructure on infrastructure and manufacturing – are visible in regional returns. The bank Nifty has jumped 259 per cent, while the Nifty PSU bank index has been slow at about 80 per cent. Dasani said in the media report that the growth of Nifty Bank shows the journey from NPA -laden balance sheet to strong capital ratio and loan growth of double digit. Conversely, the Nifty PSU Bank reminds that the revolution process of public sector banks took a long time during reforms.
Meanwhile, Infra and Energy, supported by the record public capital experience and focus on self -reliance, performed well. The Nifty Energy increased by 244 per cent, while the Nifty CPSE index saw 147 per cent growth.
Meanwhile, the consumption-centric Nifty Auto increased by 316 percent in the last 11 years. Recent cuts in GST rates have also been a major contributor in this growth. The Nifty IT index also saw more than 300 percent increase.
Will the market cross 1 lakh marks?
Currently, the Indian stock market is trapped in uncertainty. For the last one year, the Sensex has been on the red mark, so the question is whether it is possible to touch the 1,00,000 mark in the next four years of his tenure? Dasani media report said that in the financial year 26-27, corporate income is expected to increase at the rate of 10-12 per cent compounding annual growth rate (CAGR), as well as with softening of global interest rates and stable prices of oil, it can be achieved in Modi’s current tenure. On the other hand, global risk remains. Which includes a rapid rise in crude oil prices, global recession, or decline in cyclic interest rates etc.