Indian equity markets delivered exceptional long-term returns during Prime Minister Narendra Modi's tenure, with the Sensex and Nifty gaining around 200% since 2014. According to reports from The Economic Times, PM Modi took oath as the 14th Prime Minister of India on May 26, 2014, when Sensex closed at 24,693 and Nifty ended at 7,367 on May 23, 2014. The market capitalisation of all BSE-listed companies stood at less than ₹85 lakh crore at that time. Around 12 years later, the Sensex and Nifty have skyrocketed 198% and 214% respectively, with a massive ₹374 lakh crore market cap surge for all BSE-listed companies since PM Modi took charge. As reported by The Economic Times, PM Modi has now broken Jawaharlal Nehru's record as the longest-continuously serving Prime Minister of India, highlighting the sustained wealth creation across different market segments.
The Nifty Bank index emerged as the top performer, jumping 254%, significantly outperforming the broader Nifty 50 index. As reported by The Economic Times, other sectors that strengthened included Nifty Pharma (222%), Nifty IT (220%), Nifty Realty (194%), Nifty FMCG (171%), and Nifty PSU Bank (107%). However, only one sector provided negative returns, with the Nifty Media index dropping 23% since 2014. The sustained wealth creation across sectors highlights the market's resilience despite various economic cycles and evolving conditions. Notably, metals emerged as the top-performing sector during this period, demonstrating the broad-based nature of the market rally. Recent data shows the Nifty PSU Bank index has delivered impressive long-term returns of 259.34% over 5 years and 112.46% over 3 years, reflecting the continued strength in the public sector banking sector.
According to The Economic Times analysis, the Sensex had surged nearly 400% between 2004 and 2014 during then Prime Minister Manmohan Singh's tenure, climbing from 4,961 to 24,693. Over the 10 years of Manmohan Singh's tenure, Sensex delivered a CAGR of nearly 18%. Under Atal Bihari Vajpayee's 6-year tenure from March 1998 to May 2004, the Sensex delivered a 3% CAGR, while during his previous short tenure of 13 days in May 1996, it delivered 2% CAGR. The benchmark index delivered a 24% CAGR during PV Narasimha Rao's nearly five-year term between June 1991 and May 1996. During Rajiv Gandhi's term as Prime Minister, Sensex delivered a CAGR of around 21%, while that during VP Singh's 11-month tenure stood at 73%. The Sensex delivered a 20% CAGR during the four-year tenure of Indira Gandhi as PM from July 1980 to October 1984, according to the analysis.
As reported by The Economic Times, midcaps significantly outperformed the broader indices during PM Modi's tenure. The analysis shows that Sensex surged nearly 400% between 2004 and 2014 under then Prime Minister Manmohan Singh, demonstrating the sustained wealth creation across different market segments. While geopolitical uncertainties and other factors may spook investors in the short-term, the longer-term picture shows how Indian equity markets have delivered consistent returns during PM Modi's record-breaking tenure. The sustained outperformance of midcap stocks, combined with the broad-based sectoral gains, reflects the market's ability to create wealth across various investment categories and economic cycles. Recent market data shows that midcap stocks continue to outperform with strong sectoral performance, indicating the continued strength of the broader market ecosystem.
