Nifty crosses 10,000: In the index's 10-yr journey from 5,000, top gainer Eicher Motors gives 6,395% returns

The NSE Nifty on Tuesday created history by breaching the 10,000 level for the first time, with investors betting big on the economic growth and reform momentum. The country's stock markets have been rallying after the NDA government rolled out the goods and services tax, giving rise to hopes that there are more such structural reforms up the sleeve.

The 50-share index hit 10,011.30 in the early morning trades, rising 44.90 points, or 0.45 percent, from Monday's close.

PTI image.

PTI image.

According to brokers, sentiment was upbeat on sustained capital inflows and widespread buying by retail investors, driven by strong earnings by some more bluechip companies.

Apart from these, there are expectations of a rate cut by the Reserve Bank of India at the meeting of its rate setting panel next month.

“With the CPI inflation easing below the 2 percent floor of the inflation target band in June 2017, a reasonably favourable progression of the monsoon and kharif sowing so far, and limited evidence of a knee-jerk rise in prices following the imposition of the goods and services tax (GST), there is a high likelihood that the MPC (Monetary Policy Committee) would vote to reduce the repo rate by 25 bps in their upcoming meeting," Naresh Takkar, Managing Director and Group CEO of rating agency ICRA, said in a statement.

Though the Nifty has now come off its highs, the index's journey over the last 10 years from 5,000 to 10,000 is remarkable.

Here are four charts that capture the market during the rise:

The CNX Nifty gained over 100 percent from 27 September 2007 when the index for the first time touched 5000-mark. In fact, after the global financial crisis that broke out in 2008, the Nifty had fallen 50 percent to a low of 2524.20 on 27 October 2008. From this point the index has actually soared 297 percent (or 7487.10 points) to hit 10011.30 on Tuesday.

Of the 44 stocks that were Nifty constituents on 27 September 2007 and continue to be now, 31 gave 100-6,395 percent returns and 7 returned 39-86 percent. Eicher Motors is the top gainer among these 44 stocks, rising a mind-boggling 6,395 percent over the 10 years. On 27 September 2007, the stock was Rs 436.70 and today it is at Rs 28,363.40. IndusInd Bank ranks second in returns sweepstakes with a 2,016 percent rise in its share price from Rs 72.85 to Rs 1,541.30. Aurobindo Pharma, the third one, has seen 1,189 percent rise from Rs 57.78 to Rs 744.70 now.

Only 3 stocks have given negative return during the period. They are Tata Steel (share price down by 21.5 percent), NTPC (15.2 percent) and Bharti Airtel (12.1 percent). Two stocks gave negligible returns - ONGC just 0.3 percent and Tata Power 2 percent.

HDFC Bank is the top wealth creator among the 44 Nifty stocks. Its market capitalisation rose from Rs 50,649 crore on 27 September 2007 to Rs 4,49,168 crore today, a gain of whopping Rs 3,98,519 crore. HDFC Bank shares surged 509 percent from Rs 286.60 to Rs 1745.10. IT major Tata Consultancy Services ranked second with Rs 3,85,526 crore rise in market cap from Rs 1,03,976 crore to Rs 4,89,502 crore now. FMCG majors ITC and Hindustan Unilever are 3rd and 4th with Rs 2,84,959 crore and Rs 2,00,630 crore rise in market valuation. Energy major Reliance Industries is at fifth spot with Rs 1,99,383 crore gain from Rs 3,23,057 crore to Rs 5,22,440 crore.

The companies that have shown decline in the value are NTPC (an erosion of Rs 24,283 crore) and Bharti Airtel (Rs 13,598 crore).


Published Date: Jul 25, 2017 02:32 pm | Updated Date: Jul 25, 2017 02:47 pm


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