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Nifty turns 29: From 1,000 in 1996 to over 26,000, a look at its journey so far

IANS April 22, 2025 218 views

The Nifty index, launched by the National Stock Exchange in 1996, has transformed from a modest 1,000-point benchmark to a robust 26,000-point indicator of India's economic strength. Its remarkable journey reflects the country's economic evolution, weathering global challenges like the 2008 financial crisis and the COVID-19 pandemic. The index now represents 50 of India's most traded companies across 15 sectors, showcasing impressive growth and investor confidence. With its consistent resilience and steady upward trajectory, the Nifty has become a critical barometer of India's financial markets.

"The index has consistently shown resilience, bouncing back with strength" - NSE Analysis"
Mumbai, April 22: Over nearly three decades, the Nifty index has evolved into a key barometer of the Indian equity market, growing from a base value of 1,000 to over 26,000.

Key Points

1

Nifty tracks 50 largest Indian companies across 15 sectors

2

Grew from 1,000 points to over 26,000 in 29 years

3

Survived major global economic challenges

4

Represents 55.48% of NSE's free-float market cap

On Tuesday, the Nifty marked its 29th anniversary, continuing to serve as a reflection of India’s economic growth, investor confidence, and market sentiment.

Launched by the National Stock Exchange (NSE) on April 22, 1996, the Nifty was introduced just two years after the exchange began operations.

The index was created with a base date of November 3, 1995, and a base value of 1,000. Today, it tracks the performance of 50 of the most traded and largest companies in India across 15 sectors and represents about 55.48 per cent of the NSE’s total free-float market capitalisation as of March 28, 2025.

Since its inception, the index has witnessed phenomenal growth. It crossed 1,000 points in 1999, 5,000 by 2007, and 10,000 in 2017.

Its rise accelerated after 2020, with the index breaching 15,000 in February 2021 and surpassing 26,000 in September 2024.

The highest closing level so far was 26,216.05 on September 26, 2024, with an all-time intra-day high of 26,277.35 recorded the following day.

This remarkable rally was supported by strong corporate earnings, high levels of participation from retail and institutional investors, and steady macroeconomic performance.

However, the journey hasn’t been without challenges. The index has weathered multiple global and domestic shocks, including the 2008 financial crisis, the COVID-19 pandemic, and the recent uncertainty over a US recession triggered by reciprocal tariffs announced by US President Donald Trump.

Despite these disruptions, the index has consistently shown resilience, bouncing back with strength and continuing its upward trajectory.

The index has also played a pivotal role in developing India’s derivatives market. Futures and options trading on the Nifty began on June 12, 2000, and it remains one of the most actively traded instruments on the exchange.

Meanwhile, the NSE is preparing for its own market debut. In March 2025, the exchange submitted a detailed response to the Securities and Exchange Board of India (SEBI), addressing queries regarding its IPO plans and seeking approval to file its draft red herring prospectus (DRHP).

However, the BSE, its older counterpart, has been listed since February 2017.

Reader Comments

R
Rahul K.
What an incredible journey! From 1,000 to 26,000 in less than 30 years shows how much potential our markets have. Makes me wish I'd invested earlier! 💰
P
Priya M.
The article could have included more about how retail investors can benefit from tracking Nifty movements. Otherwise great overview of its history!
S
Sanjay T.
Remember when Nifty crashed during COVID? That was scary! But look how it bounced back stronger than ever. Indian markets are resilient 💪
A
Ananya R.
My dad always talks about how he bought his first stocks when Nifty was around 3,000. Now I understand why he's so proud of that decision! #GenerationalWealth
V
Vikram P.
Interesting read, but I wonder - with NSE planning its IPO, will this create more volatility in Nifty? Would love to see analysis on that aspect.
N
Neha S.
The growth numbers are impressive, but let's not forget the small investors who panic-sold during downturns. Market education is as important as the growth itself.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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Tags:
Nifty Index Indian Stock Market NSE Market Growth Financial Milestone
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