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Markets richer by Rs 75L cr since NDA win in 2014

NEW DELHI: India's stock market wealth grew by Rs 75.25 lakh crore in five years since Narendra Modi-led NDA emerged victorious in the Lok Sabha polls in 2014, with benchmark sensex gaining 61 in step with cent all over this time.

An analysis of the stock market movements from May 16, 2014 till date confirmed that the 30-share BSE sensex jumped 14,689.65 issues or 60.89 in step with cent. The index hit an all-time high of 40,124.96 issues in morning industry on Thursday, amid tendencies pointing towards a thumping majority for Modi-led NDA in the general elections.

The general market capitalisation (m-cap) of BSE-listed firms has grown from little over Rs 75 lakh crore to Rs 150.25 lakh crore all over May 16, 2014-May 23, 2019 duration. This represents an building up of Rs 75.25 lakh crore.

At shut of industry on Thursday, the market valuation of BSE-listed corporations used to be at Rs 1,50,25,175.49 crore.

The BSE benchmark index jumped 1,zero14.75 issues to 40,124.96 all over the day after BJP's sturdy appearing in the Lok Sabha polls. However, later it gave up all the positive factors and closed at 38,811.39, a fall of 298.82 issues amid profit-booking towards the fag finish of the day's industry.

The results of 2014 Lok Sabha polls had been introduced on May 16 and BJP had won 282 seats. Subsequently, National Democratic Alliance (NDA), headed by Prime Minister Narendra Modi, shaped the government.

"In the past five years, the stock market has made new highs and touched new milestones. Politics is on the crux of the current rally and stocks have risen best because of the euphoria of a Modi govt coming back to power for but any other term.

"History has shown time and again that all over elections, feelings always surpass rationality and it's this very sentiment that drives the markets. However, this sentimental rally is short-lived and in the end when the rush fades away, markets would possibly witness a tight correction," Umesh Mehta, head of research at SAMCO Securities, said.

Jagannadham Thunuguntla, senior vice chairman and head of research (Wealth) at Centrum Broking, said that during 2014, there used to be historical political mandate with single celebration profitable transparent majority leading to huge rally in fairness markets in anticipation of main reforms.

According to him, there used to be broad-based rally with participation throughout sectors developing monumental wealth for investors however beginning 2018, the markets rally got concentrated into make a selection large-cap firms with underneath performance in broader markets.

"With the transparent mandate coming in 2019 elections, there is a chance that this divergence between large-caps and mid-caps will disappear; and participation would possibly again turn into broad-based," he said.

Nilesh Shah, MD and CEO of Kotak Mutual Fund, said elimination of political uncertainty is always welcome from a market perspective.

"Current mandate shows the adulthood of voters in choosing a solid govt. Now with that uncertainty behind, markets will focal point on steps taken by the government to encourage funding and give push to consumption, which is hitting a comfortable patch," he added.

RIL is the rustic's maximum valued firm with a market valuation of Rs 8,46,751.88 crore, followed by TCS (Rs 7,72,728.58 crore), HDFC Bank (Rs 6,36,120.68 crore), Hindustan Unilever Ltd (Rs three,79,028.92 crore) and HDFC (Rs three,66,149.73 crore).

"Well, since 2014 the markets have executed really well up 60 in step with cent in five years. This a is an excellent performance by any standards, world or native," Sindhu Sameer, head of sales – institutional equities at Emkay Global Financial Services Ltd, said.

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