Modi government passes with flying colours in stock exchange
Indian economy growth can be measured, to a certain extent, by the performance of its stock exchanges - BSE and NSE.
A look at the Sensex gives a tell-tale sign, if things are looking up or not.
Since Modi has completed three years in office, this is a good time to gauge how the economy has fared under NDA government.
Here's all about it.
Modi regime noted by bullish sentiments across sectors
The economy is holding strong
Demonetization, GST, IT sector related setbacks and housing sector slouch have not spooked the benchmark equity indices into submission, contrary to popular belief.
Sensex and Nifty 50 have exceeded their previous record levels and are now standing strong at 30,000 and 9,400, respectively.
There have been occasional hiccups, but the recovery has also been quick and the domestic equity market is making strong advances.
Rise of multibagger stocks
Reports suggest that about one-fourth of BSE-listed stocks churned out gains ranging from 160% to as high as 16,000% in three years with consumer spending, rural consumption, textiles and housing finance too, providing excellent returns.
There has been an increase in multibaggers i.e. around 1250 stocks, whose prices have gone up several times over their initial investment values, which is a good sign.
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Bullish sentiments will remain
Porinju Veliyath, Equity Intelligence India, said to CNBC-TV18, "We have to understand that we are in the economy where the economy is moving from black to white, unorganized to organized… this is historic and people are underestimating the potential of the structural change which is happening."
Under the Modi government, the market is showing bullish sentiments and this is going to stay, opine experts.
What went right under the NDA regime?
The reason for this upward trend can be attributed to several reforms that have been initiated lately to spearhead economic activity, like, increased focus on rural consumption, added push on infrastructure sector, steps taken for ease of business, simplifying investment paperwork etc.
Demonetization didn't have any lasting effect on the economy and the curb on black money has been taken in good stride.
Aadhaar and Demonetization fears were unfounded
According to a Deloitte report, the NDA government has saved Rs. 36,144 crore by directly transferring benefits via Aadhaar, which has successfully eliminated thousands of ghost accounts.
Demonetization drive has fuelled growth in the private sector and e-commerce, and FinTech has thrived.
"There have been over 10 unicorns as of end of 2016 in India," said the Lead Economist of Deloitte India, Anis Chakravarty.
GST for the long haul
Impending Goods & services tax (GST) has made the market tread a tad bit cautiously, but once implemented it's believed to benefit Indian economy in long run.
Veteran industrialist Adi B. Godrej agrees, saying, "First of all, evasion of indirect taxes will become very difficult. So, people will be compliant, that means government revenue will go up because evasion will come down a lot."