"Reforms created robust financial system, every Indian can participate in stock market," says PM Modi
New Delhi, India: Prime Minister Narendra Modi has asserted that the BJP is on track to form the government for a record third term and the victory of the party will also result in record numbers on the country's stock exchange market.
"I can say with confidence that on June 4, as the BJP hits record numbers, the stock market will also hit new record highs," Modi said in an interview with the Economic Times.
PM Modi told that business daily said that the Sensex has rallied from 25,000 points to 75,000 in 2024. He also highlighted that the investors have shown confidence in his government.
"The trust the stock market places in us is evident in its remarkable performance over the past decade. When we took office, the Sensex was around 25000 points. Today, it stands at around 75000 points, reflecting a historic rise. Recently, we reached a whopping USD 5 trillion market cap for the first time ever," the PM said.
"Over the past 10 years, if you just take a look at the number of Demat accounts, you will understand how citizens have started to show confidence in the Indian economy. The number of mutual fund investors has increased from 1 crore in 2014 to 4.5 crore today. As a result, we have a broader base of domestic investment. Our investors are well aware of the pro-market reforms we have implemented. These reforms have created a robust and transparent financial system, making it easier for every Indian to participate in the stock markets," PM Modi added.
As the campaign for the Lok Sabha polls hits its final phase, PM Modi is confident that the voter has placed its trust in his party.
"In contrast, the atmosphere on the opposition side is very grim and hopeless. It shows that we are well on track to achieve a historic victory in the ongoing elections. People also realise this and hence they won't waste their vote on Congress and its allies which have already lost the election," the Prime Minister told Economic Times.
According to the market data, the Nifty 50 index has surged threefold in the last 10 years, the Nifty index has surged from 6,900 points in 2014 to 22,700 points in 2024.
The market capitalisation of companies listed on BSE has also touched a milestone of USD 5 trillion, hitting a fresh high on May 21, exchange data showed. The ongoing rally in the Indian stock markets helped to reach this feat.
In early April, the BSE market map had touched USD 4 trillion, and it took a month and a fortnight to add another trillion.
Market capitalisation or market cap is the total value of a company's stock, derived by multiplying the stock price by the number of its outstanding shares.
Firm GDP growth forecasts with the country set to remain the fastest growing major economy, inflation at manageable levels, political stability at the central government level, and appreciable central bank monetary policy, have all contributed to painting a bright picture for the Indian economy in recent quarters.
According to the latest Bernstein research, the stock market will experience a short-term rally post-election if NDA comes back to power. Sectors like infrastructure, manufacturing, and domestic cyclicals are expected to lead the way.
The benchmark equity indices closed Wednesday's session positively. The NSE Nifty 50 rose by 68.74 points (0.31 per cent) to 22,597.80, while the BSE Sensex increased by 267.75 points (0.75 per cent) to 74,221.06.
The gains were led by large-cap and mid-cap stocks, with the Bank Nifty index declining by 266.25 points (0.55 per cent) to 47,781.95. Sector-wise realty and FMCG outperformed, while metal and financial services saw declines.
