Mumbai, April 22 (IANS): 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.
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.