100 Days Of Modi 3.0: Sensex Gains 6,600 Points, Nifty Over 2,100

The first 100 days of the third Narendra Modi-led government have seen a stellar boost in India's benchmark equity indices.

The 30-share BSE Sensex has soared nearly 6,600 points, or 8.6%, to 83,079.66 at Tuesday's close since June 9, when Prime Minister Modi took the oath of office for the third time.

In the same period, the NSE Nifty 50 has surged 2,160 points, or 9.3%, to 25,418.55.

Both indices closed at record highs on Tuesday as market participants shifted their focus to the US Federal Open Market Committee's policy meeting, starting later in the day.

The BJP failed to secure a simple majority of its own in the recent Lok Sabha elections and has to depend on allies like the TDP, JD(U) and LJP(RV) to prop up the National Democratic Alliance government. The party secured 240 seats, 32 short of the majority, while the NDA tally hit 293.

The performance of the benchmarks this time is in sharp contrast to 2019 when, even after the BJP clinched a successful second term with another clear majority, the markets declined. The Nifty lost 1,000 points and the Sensex declined over 2,800 points in the first 100 days of the second NDA government.

Modi's initial months during his first stint as Prime Minister in 2014 had the stock market roaring, with Nifty and Sensex posting nearly 11% gains between May 26 and Sept. 3.

In percentage terms, the second Manmohan Singh-led UPA government was also good for the indices, with double-digit gains in the first 100 days.

To be sure, the first 100 days of a new government include the Union budget for the whole year, along with major policy and governance initiatives like cabinet formation, rollout or announcement of schemes, etc. These events have a major bearing on the stock markets.