Awareness Financial Management Aman Munjal June 20, 2024

A Historical Overview of Sensex and Nifty Yearly Rise

India’s financial markets have witnessed significant growth and transformation since the inception of the Sensex and Nifty indices. These indices are key indicators of the Indian stock market’s performance and are closely monitored by investors, policymakers, and economists alike. In this blog post, we present a comprehensive grid detailing the yearly rise of Sensex and Nifty from their inception on April 1st of each year, up to and including 2024. We also include data on the ruling party and major reforms in the last year to provide a contextual understanding of market movements.

Sensex and Nifty Yearly Rise (April 1st)

Date (Year)	Sensex	Sensex Increase (Points)	Sensex % Increase	Nifty	Nifty Increase (Points)	Nifty % Increase	Ruling Party	Major Reforms in Last Year
1996	3360	N/A	N/A	1000	N/A	N/A	INC	Economic liberalization continues
1997	3477	117	3.48%	1023	23	2.3%	INC	Continued focus on liberalization
1998	3892	415	11.94%	1132	109	10.65%	BJP	Nuclear tests, economic sanctions, initial reforms
1999	3921	29	0.75%	1148	16	1.41%	BJP	IT sector growth, Y2K boom
2000	5001	1080	27.55%	1528	380	33.09%	BJP	Disinvestment, telecom boom
2001	4269	-732	-14.64%	1304	-224	-14.66%	BJP	Dot-com bust, 9/11 impact
2002	3469	-800	-18.74%	1149	-155	-11.88%	BJP	Economic slowdown, Gujarat riots
2003	3248	-221	-6.37%	1032	-117	-10.18%	BJP	Economic reforms, market recovery starts
2004	5591	2343	72.15%	1771	739	71.63%	BJP/INC	Telecom and IT growth, NDA to UPA transition
2005	6493	902	16.13%	2035	264	14.91%	INC	FDI in various sectors, rural employment schemes
2006	11280	4787	73.76%	3421	1386	68.12%	INC	Banking reforms, growth in services sector
2007	13072	1792	15.89%	3821	400	11.69%	INC	SEZ policy, inclusive growth initiatives
2008	15644	2572	19.68%	4735	914	23.91%	INC	Global financial crisis begins
2009	9708	-5936	-37.95%	3021	-1714	-36.2%	INC	Stimulus packages, economic recovery measures
2010	17527	7819	80.55%	5249	2228	73.72%	INC	Further liberalization, FDI policies
2011	19445	1918	10.94%	5833	584	11.13%	INC	GST discussions, reforms in taxation
2012	17404	-2041	-10.5%	5295	-538	-9.22%	INC	Economic slowdown, inflation control measures
2013	18835	1431	8.22%	5682	387	7.31%	INC	Fiscal consolidation, direct benefit transfer scheme
2014	22386	3551	18.86%	6704	1022	17.99%	INC/BJP	Modi wave, economic optimism
2015	27957	5571	24.88%	8491	1787	26.66%	BJP	Make in India, GST implementation
2016	25341	-2616	-9.36%	7738	-753	-8.87%	BJP	Demonetization, crackdown on black money
2017	29856	4515	17.82%	9173	1435	18.54%	BJP	GST rollout, digital economy push
2018	32968	3112	10.42%	10113	940	10.25%	BJP	Economic reforms, infrastructure investment
2019	38672	5704	17.31%	11623	1510	14.93%	BJP	Corporate tax cut, financial sector reforms
2020	28265	-10407	-26.91%	8263	-3360	-28.91%	BJP	COVID-19 pandemic, stimulus measures
2021	49509	21244	75.18%	14691	6428	77.8%	BJP	Vaccine rollout, economic recovery packages
2022	59270	9761	19.72%	17679	2988	20.35%	BJP	PLI schemes, infrastructure boost
2023	60840	1570	2.65%	17945	266	1.5%	BJP	Continued economic reforms, focus on green energy
2024	74014	13174	21.66%	21850	3905	21.76%	BJP	Digital infrastructure, AI initiatives

Key Highlights and Observations

Market Growth:

Steady Increase: Both the Sensex and Nifty indices have shown a general trend of growth since their inception, despite occasional downturns.
Significant Milestones: The Sensex crossed 10,000 points in 2006, 20,000 points in 2010, 30,000 points in 2017, 60,000 points in 2021, and 70,000 points in 2024. Nifty mirrored this growth, reflecting overall economic progress.

Major Economic Events:

Economic Liberalization (1991 onwards): Significant policy changes and economic reforms laid the foundation for long-term growth.
Dot-Com Bust (2000-2001): Market correction after the technology bubble burst.
Global Financial Crisis (2008): Sharp declines followed by a strong recovery.
Demonetization (2016): Short-term market shock with long-term impacts on financial inclusion and formalization of the economy.
COVID-19 Pandemic (2020): Drastic fall followed by a rapid recovery due to stimulus measures and vaccine rollouts.

Political Influence:

Economic Reforms: Different ruling parties have implemented various economic policies and reforms, significantly impacting market performance.
Stability and Growth: Political stability often correlates with market confidence and growth, as seen during prolonged tenures of ruling parties.

Major Reforms:

GST Implementation (2017): Simplified tax structure boosted economic activities.
Make in India: Initiative to promote manufacturing and attract foreign investments.
Digital Push: Efforts to enhance digital infrastructure and services.

Conclusion

The historical performance of Sensex and Nifty highlights the dynamic nature of India’s financial markets, influenced by global events, domestic policies, and economic reforms. By understanding these trends and their underlying causes, investors can make more informed decisions and anticipate future market movements. As India continues to evolve economically and politically, the Sensex and Nifty will remain crucial indicators of the nation’s financial health and investor confidence.