How Sensex, Nifty rallied 200% under PM Modi’s record-breaking tenure

While geopolitical uncertainties and other factors spook investors in the short-term, a look at the longer picture shows how Sensex and Nifty have rallied around 200% since 2014, when PM Narendra Modi took office for the first time, till today, when he broke Jawaharlal Nehru’s record as the longest-continuously serving Prime Minister of India.

Prime Minister Narendra Damodardas Modi took oath as the 14th Prime Minister of India on May 26, 2014. A day before PM Modi took oath, Sensex closed at 24,693 while Nifty ended the session at 7,367 on May 23, 2014. The market capitalisation of all companies listed on BSE stood at less than Rs 85 lakh crore.

Around 12 years later, the Sensex and Nifty have skyrocketed 198% and 214%, respectively, with a massive Rs 374 lakh crore market cap surge for all BSE-listed companies since PM Modi took charge.

Which sector performed best?

Metals were the clear winners under PM Modi’s leadership, with the Nifty Metal index soaring a whopping 309% since he took charge. Nifty Financial Services and Nifty Auto followed, rallying around 300% each in these 12 years.

The widely tracked Nifty Bank index jumped 254%, outperforming the broader Nifty 50 index. Other sectors included Nifty Pharma (222%), Nifty IT (220%), Nifty Realty (194%), Nifty FMCG (171%) and Nifty PSU Bank (107%), which also strengthened.

Only one sector, however, provided negative returns, and it is the media. The Nifty Media index has dropped 23% since 2014.

Sharp outperformance of midcaps

One thing that clearly stands out is the outperformance of midcap stocks during this period. The Nifty Midcap 100 index skyrocketed 473%, making massive sums of money on Dalal Street. Nifty Midcap 50 index rallied 434% during the period.

Nifty Smallcap 100 index surged 255% since PM Modi took office, less than midcaps but higher than the Nifty 50’s 214% rally during the same period. It is important to note that the classification of midcaps, smallcaps, and largecaps is fluid, and several stocks may have changed their category over the years following market cap surges and declines. Also, the Rs 374 lakh crore market cap surge for all BSE-listed companies, however, does not entirely reflect fresh wealth creation, as markets also saw new listings, preferential issues and more.

How stock market performed under different Prime Ministers

Prime Minister Narendra Modi is the first Indian Prime Minister to be born after India attained independence in 1947. He was re-elected to power following the General Elections of 2019 and 2024. Sensex has delivered a CAGR of nearly 10% since he took charge.

Notably, Sensex surged nearly 400% between 2004 and 2014, climbing from 4,961 to 24,693, when then Prime Minister Manmohan Singh was at the helm. Over the 10 years of Manmohan Singh’s tenure, Sensex delivered a CAGR of nearly 18%, according to an oil report by portfolio manager E.A. Sundaram.

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Under Atal Bihari Vajpayee’s 6-year tenure from March 1998 to May 2004, the Sensex delivered a 3% CAGR, and 2% during his previous short tenure of 13 days in May 1996. 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%. Sensex delivered a 20% CAGR during the four-year tenure of Indira Gandhi as PM from July 1980 to October 1984, according to the analyst.

Former PM Atal Bihari Vajpayee famously once said, “Sarkaare aayengi jayengi, partiyan banegi, bigedgi, magar ye desh rehna chahiye”. This reverberates across generations, political inclinations, and even on Dalal Street. As India rapidly fights headwinds and moves ahead, so do its resilient stock markets.

Also read: Equity mutual fund inflows tumble 40% to Rs 22,907 crore in May

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