Nifty crosses 10,000-mark: Tracing its journey over the past 22 years

In May this year Nifty had touched 9,400-mark and analysts predicted it reaching 10,000-mark by year end.  NSE Nifty on Wednesday crossed 10,000-mark again after briefly touching it Tuesday only to retreat soon after. 

At 1240 hours on July 26, 2017, Nifty was trading at 10,009.35, up 0.45% or 44.80 points. 

The journey of NSE Nifty started with base value at 1000 in November 1995. Since then, in 22 years, the benchmark has gained 10 times. 

In a statement, NSE said that Nifty 50 reached 2000-mark in December 2004, taking 9.1 years. 

"Thereafter, the journey of Nifty 50 was swift wherein it reached the 6000 mark in only 2.9 years. It took another 6.4 years to reach the 7000 mark in May 2014 from 6000 in December 2007. The 9000 level was achieved in March 2017 which was relatively faster from 7000 level taking only 2.8 years. The flagship index ‘NIFTY 50’ hit the 10,000 mark on July 25, 2017 taking only 4.3 months to move from 9000 to 10000," the exchange said. 

On yearly basis, since 1995, Nifty 50 has given annualised returns of 11.2% while having annualised volatility of 24.5%.  Volatility in recent periods has reduced from over 24% since inception to close to 8-11% in more recent times (6 month to 1 year period). The return to risk ratio of NIFTY 50 has also improved substantially over the years from 0.46 since inception to 1.98 in the last 6 month period. 

Interestingly, there are just 15 companies which are present at NIFTY 50 since inception.

Looking at the market capitalisation, Nifty 50 constituents accounted for 33.7% of full market capitalisation and 62.2% of turnover of all the stocks listed at NSE. Over the years, market representation in terms of full market capitalisation by Nifty 50 constituents has grown to 54.3%, whereas in terms of turnover, it has declined to 38.3% in 2017.

Now, when the benchmark has touched historic-high, the prediction of it touching 30-000-mark in five years, will be watched closely. 

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