What an exciting week it’s been! A historic day for India’s stock market!
The last time people were this excited was when MRF, a famous tire company, crossed the Rs. 1 crore mark. On September 11, Nifty 50 reached a massive 20,000 points, rising almost 1% from the previous day.
This journey to 20,000 has taken a long time. Nifty 50 first hit 10,000 on July 26, 2017, and it took more than 21 years to double that number.
Since then, India has come a long way in the last 30 years. From 10,000 to 20,000, it took another 6 years, 1 month, and 16 days. For many people, 20,000 is not just a number; but happiness for many. Now, Nifty is on its way to 21,000 points.
Before this, Nifty’s highest point was 19,991.85 on July 20, of this year. Experts think that the G20 Delhi Declaration boosted people’s confidence in the market.
Let’s look back in time and see how Nifty got to where it is today, from when it started in 1996 to reach 20,000 points, and how it dealt with different economic challenges:
1996 – Birth of Nifty50
The Nifty 50 index was launched on April 22, 1996, at 1,107 points, with a base value of 1,000 counted from November 3, 1995.
The base date of the index is November 3, 1995, which was the start date of equity trading on NSE.
1999 – Kargil War
The Kargil War was a significant event from May 3 to July 26, 1999. Surprisingly, during this time, the Sensex went up by 38% in less than three months. Even when the war was happening, the stock market was doing well.
During the Kargil War in 1999, both the Sensex and Nifty went up by 33% each. In just three months, the Sensex went up by 1,115 points, and the Nifty went up by 319 points.
It’s interesting to see that even during a tense time like the Kargil War, the stock market did better, which was a positive surprise for many.
2008 – Mumbai terror attacks in November
During the Mumbai terror attacks in 2008, something unexpected happened in the stock market, and the market reacted surprisingly.
Nifty 50 bounced back by 50% in just six months, despite the tragic events.
Even as Mumbai was in crisis, the stock market showed resilience, with the Sensex rising by about 400 points in two-day trade during the attack.
2008 – Global financial crisis
The 2008 financial crisis was known as the biggest disaster after The Great Depression. The financial crisis was caused by the bubble created by the housing market in the US. The Ripple effect saw the market fall a number of times in 2008.
The year 2008-09 saw the Indian markets fall by over 50% from their high.
2010 – Euro debt crisis
May 6, 2010: The day started off with a little more fear in the market than normal due to FIIs selling pressure.
The market declined throughout the day because of worries over Europe.
On May 6, 2010, the stock market had a worrisome day due to foreign investors (FIIs) selling their investments, causing concerns over Europe. This led to a decline in the market.
2012 – Flash Crash
In 2012, there was a sudden and sharp drop in the Nifty index caused by mistaken trades involving 59 leading stocks on Friday morning. This incident raised worries about the reliability of the stock exchange’s software leading to a sharp 15.5% drop in the Nifty index.
By the end of that trading day, the Nifty recovered but closed 41 points lower at 5,747.
2014 – Modi’s Election Victory
The markets continued to rally in 2014 buoyed by a thumping victory for the BJP in the elections and Prime Minister Narendra Modi taking over the reins. Modi was perceived by the Street as a prime minister who would push economic reforms aggressively. On September 1, 2014, the Nifty touched 8,000.
In 2014, the stock market experienced a rally following a big win for the BJP in the elections, with Narendra Modi becoming Prime Minister. Investors saw Modi as a leader who would drive economic reforms aggressively. On September 1, 2014, the Nifty reached the milestone of 8,000 points.
2015 – China market crash and first fed rate hike in 9 years
On 24 August 2015, the Indian stock market went through a rough patch, with the NSE dropping by 490 points. The indices closed at 25,741 points and the Nifty at 7,809 points.
This drop was mainly due to a ripple effect caused by concerns over China’s economy slowing down, as the Yuan had been devalued two weeks ago causing a fall in the currency rates of other currencies and the rapid selling of stocks in China and India.
2016 – Demonetisation
On November 9, Nifty saw a significant drop of over 541 points, hitting 8,002.
It was the time when the Modi government decided to demonetise the notes of Rs. 500 and Rs. 1000 to tackle issues like black money, fake currency and corruption.
The Indian rupee also got weaker against the US dollar by 23 paise to Rs. 66.85.
2020 – COVID lockdown
The Union Budget presentation on February 1 caused a Nifty drop of more than 3% amid worldwide fears over the emerging COVID pandemic.
On February 28, the Nifty fell 432 points because of rising worldwide concerns over Covid. In early March, the Nifty suffered more losses, and the Yes Bank issue added more to the market instability.
By the 23rd of March, the Nifty had fallen 12.98% to 7,511, its lowest level since 2016, as lockdowns and recession worries grew amid a rising number of COVID cases in India and throughout the world.
2022 – Russia-Ukraine War
When Russia attacked Ukraine in February 2022, stock markets worldwide went down. At this time, the Nifty also experienced a significant drop to 15,741, which has been trading within the range of 17,000 to 18,500.
It was mainly because of weak global signs and a rise in oil prices due to sanctions on Russia.
2023 – Unstoppable Nifty
Despite challenges like a banking crisis in the US and the looming global recession, India’s strong economy and good governance attracted foreign investment.
The Nifty index hit a historic milestone by crossing the 20,000 mark on September 11, signalling India’s strong position in the global stock market.
Since the beginning of April, the Nifty has surged by 17%, driven by inflows of over $18.9 billion. The mid- and small-cap indices have also risen substantially by about 41% and 47% respectively.
Despite high inflation, rising interest rates, expensive crude oil, erratic monsoons, and global slowdowns, the Indian economy has remained resilient.
Do you think, the Nifty will stay above the 20,000 mark tomorrow too?
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