Prime Minister Narendra Modi, now in his third term, turned 75 on September 17. His years in office have run parallel with one of the strongest phases in India’s stock market history, making this a moment to look back at how markets have compounded during his leadership.
From 2014 to 2025: Indices Multiply
When Modi took oath on May 26, 2014, the Nifty was around 7,360 and the Sensex near 24,690. Today, the Nifty trades above 25,100 and the Sensex above 82,000, translating to gains of 240% and 235% respectively.
Broader Rally Outshines Global Peers
While headline indices matched the S&P 500’s rise of 245% and outpaced the Dow Jones’ 175% gain, India’s broader market was the real standout.
- BSE 500: up 288%
- BSE Midcap: up 435%
- BSE Smallcap: up 491%
By comparison, the MSCI Emerging Markets index gained only 27% over the same period. As Harshal Dasani of INVAsset PMS put it, India’s wealth creation “wasn’t restricted to a few large names — the broader market massively outperformed.”
Policy Push and Investor Surge
Market strength was powered by reforms such as GST, IBC, PSU bank recapitalisation, and direct benefit transfers, alongside a renewed focus on capital expenditure. FY26 alone earmarks ₹11.11 lakh crore (3.4% of GDP) for public capex, boosting railways, defence, and infrastructure.
Retail participation has also exploded. The number of investors jumped from 4.9 crore in FY20 to 13.2 crore by December 2024, accelerating secondary market growth.
Sectoral Leaders
- Nifty Bank: up 259%, reflecting recovery from NPA stress to stronger capital and credit growth
- Nifty PSU Bank: slower at 80%, showing reforms took longer for state lenders
- Nifty Energy: up 244%
- Nifty CPSE: up 147%
- Nifty Auto: strongest performer, up 316%, supported by GST cuts and consumption demand
- Nifty IT: more than 300% rise, underscoring India’s global tech edge
The 1,00,000 Question
With the Sensex in the red over the last year, investors are asking whether the index can touch 1,00,000 during Modi’s current term. Dasani believes it’s possible: corporate earnings are projected to grow 10–12% CAGR over FY26–27, aided by easing global rates and stable oil. Risks, however, remain, from crude price spikes to global recession and cyclical derating.
