Today marks eight years since Narendra Modi took oath as Prime Minister on 26 May 2014. The Modi authorities’s eight years embrace a number of enormous bulletins similar to demonetisation, implementation of products and companies tax (GST), company tax charge reduce, lockdown. Real Estate Regulation and Development Act, Insolvency and Bankruptcy Code (IBC), had been another reforms that had been additionally launched and carried out throughout this era. During these eight years, Indian shares markets hit all-time highs with BSE Sensex touching 62,245.43 and NSE Nifty 50 scaling to 18,604. Interestingly, 13 out of 15 Sensex’ largest intraday falls (points-wise) occurred throughout these eight years.
Sensex, Nifty’s largest intraday fall since May 26, 2014
The prime 5 largest market crashes, when it comes to absolute factors, occurred in 2020 and are attributable to the information of the outbreak of Coronavirus. On March 23, 2020, Sensex witnessed its largest intraday decline when it plummeted 4,035.13 factors or an enormous 12.71%. Nifty additionally noticed the Biggest single-day fall in historical past that day because it fell by 1135.20 factors or 13.0%. In these eight years, BSE Sensex’s market capitalisation has gone up from Rs 85 lakh crore to Rs 248 lakh crore.
How NSE sectoral indices, broader markets have fared below Modi Govt
Nifty Auto index has risen 69%, whereas Metals and Pharma indices have rallied 61% and 69% respectively from 26 May 2014 until right this moment. Bank Nifty index has surged 129% and the IT index has soared over 200% throughout this era.
How markets behaved in response to main bulletins by Modi govt
GST Implementation: The Goods and Services Tax invoice was handed within the Parliament on twenty ninth March 2017, following which Nifty rose 1.5% in a single week, whereas Sensex rose 1.2%. The Act got here into impact on 1 July 2017, following which the Nifty index rose mere 0.5% in per week.
Demonetisation: On 8 November 2016, the Modi authorities introduced the demonetisation of all Rs 500 and Rs 1,000 banknotes of the Mahatma Gandhi Series. It additionally introduced the issuance of latest Rs 500 and Rs 2,000 banknotes in alternate for the demonetised banknotes. In one week following this transfer, Nifty tanked over 5%, whereas Sensex declined 4.2%.
Lockdown: In order to regulate the unfold of Coronavirus within the nation, Prime Minister Narendra Modi on 24 March, 2020 introduced a nationwide lockdown. The announcement got here a day after Sensex and Nifty witnessed their largest intraday decline, falling as much as 13%. In the week following the lockdown announcement by the PM, markets recouped among the losses as each Sensex and Nifty rose round 10%.
How markets reacted to Modi taking cost in 2014 and 2019
2014: Benchmark indices Sensex and Nifty had hit a report excessive on May 16, 2014 as traders celebrated the Lok Sabha election outcomes which confirmed that Narendra Modi would grow to be the Prime Minister with a landslide victory. On the counting date, May 16, 2014, the BSE Sensex surpassed the psychological degree of 25,000 for the primary time, surging 1,470 factors in intra-day, to hit the then lifetime excessive of 25,375.63, after end result confirmed that the BJP-led National Democratic Alliance (NDA) was all set to type the subsequent authorities on the Centre. Meanwhile, the 50-share NSE Nifty breached 7,500-mark to hit an all-time intraday excessive of seven,563.50.
2019: The landslide victory for Narendra Modi led-National Democratic Alliance (NDA) infused a way of euphoria on Dalal Street on 24 May 2019, sending the shares almost 2% greater because the back-to-back sweeping victory marked a primary for the single-party majority since 1984. BSE Sensex had ended 623 factors or 1.61 per cent greater, whereas NSE Nifty closed the day 187 factors or 1.60% up. When Prime Minister Narendra Modi started his first day of second time period on 31 May, Sensex touched an intraday excessive of 40,122.34, just a few factors away from its all-time excessive of 40,124.96 recorded through the Lok Sabha elections end result day. Nifty touched an intraday excessive of 12,039-levels.
Source: www.financialexpress.com”