Read more: Nifty's journey from 1,000 to 15,000 sees major sectoral rotation 13 firms remain in Nifty since inceptionīinod Modi, Head Strategy at Reliance Securities said the journey of 25 years for Nifty has been fantastic as 11 percent CAGR return of Nifty, by and large, has outpaced the return of all asset classes in the country. Motilal Oswal highlighted while traversing its journey from 1,107 to 15,000, the Nifty (up about 14 times) has delivered 11.1 percent CAGR returns in the last 25 years. The average P/E multiple of the Nifty between April 1996 and February 2021 stands at 15.7 times however, the average for the last 10 years is 18.8 times, said the brokerage firm. The combined market cap of these 13 companies has grown at a CAGR of 18 percent between April 1996 and February 2021, said the brokerage firm, said a report from brokerage firm Motilal Oswal Financial Services. Of the 50 stocks in the Nifty, 13 companies – HDFC Bank, RIL, HDFC, ITC, HUL, L&T, SBI, Tata Motors, Dr Reddy’s Labs, Tata Steel, Grasim, Hero, and Hindalco – have been a part of the index’s journey since inception. 'With a change in the economy from manufacturing to services over the past three decades and the rise of the private sector, the sectoral representation in 2021 is vastly different from that of 1996,' said brokerage firm Motilal Oswal.

Over the years, the sectoral representation of the Nifty has also changed tremendously and remains in consonance with the changes in the underlying economy. With time, many components of the index exit the group while the new ones enter. Nifty50 is a benchmark equity index and it shows the weighted average of India's top 50 companies, across sectors, that are listed on NSE. Nifty has come a long way after it was launched in April 1996, when it traded at 1,107, with the base year of November 1995 set as 1,000.įor the first time in history, Nifty closed above the psychological mark of 15,000 on February 8, 2021. The equity barometer came into existence on April 22, 1996, and since then has seen many changes in its components, indicating the changing business-economic dynamics of the country. India's flagship equity index Nifty50 completed 25 years of its journey on April 22.

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