This large-cap stock turns Rs 10,000 into nearly Rs 2 lakh under Modi government’s 5-year-term
New Delhi: Indian stock markets have performed considerably well under the 5-year tenure of Narendra Modi-led National Democratic Alliance (NDA) government with BSE Sensex rallying to nearly 40,000 from a level of around 24,500 five years back. A bunch of stocks, large-cap, mid-cap or small-cap, have vastly outperformed the benchmark indices registering multi-fold gains in the last five years.
The events such as implementation of the Goods and Services Tax (GST), demonetisation of higher denomination currency notes of face value Rs 500, Rs 1,000, Moody’s upgrading India’s sovereign credit rating by a notch from ‘Baa3’ to ‘Baa2’ and India’s leapfrogging entry into top 100 nations in World Bank Ease of Doing Business rankings have substantially strengthened the markets over the last five years. This ad will end in 48Skip
Following the demonetisation activity, the fiscal year 2017-18 saw a huge number of Initial Public Offerings (IPOs) out of which most of them were oversubscribed due to ample availability of funds to invest.
However, markets have also seen mini-crashes and slowdowns on the back of China meltdown in 2015, initial effects of Brexit, Greece exiting European Union, US-China trade tussle, three-day global sell-off in February 2018, tensions with regard to North Korea’s missile tests, Indian rupee plunging to record low against US dollar and several others such the recently-seen IL&FS debt crisis, fears of liquidity crunch, tensions between government and the Reserve Bank of India (RBI) and crude oil prices ballooning to a four-year high level.
With the cumulative aftermath all the aforementioned events, the 30-share Sensex has registered a gain of around 60 per cent and NSE Nifty 50 has grown a little over 60 per cent. More surprisingly, a large-cap stock has turned an investment of Rs 10,000 into nearly Rs 2 lakhs in the meantime.
Shares of the Pune-headquartered non-banking finance company (NBFC) Bajaj Finance have logged a gain of more than 1,700 per cent during the corresponding time. In the last five years, Bajaj Finance stock has rocketed 1,751 per cent to Rs 3,407.55 (closing price on Monday, May 20, 2019) from a share price level of Rs 184.1 (stock price adjusted with corporate actions) as on May 21, 2014, on National Stock Exchange (NSE).
A sum of Rs 10,000 invested in Bajaj Finance shares around a share price level of Rs 184 has turned into Rs 1,85,092.34 (Rs 1.85 lakh). With an investment of Rs 10,000, an individual could be able to buy nearly 54 equity shares of Bajaj Finance around the stock price of Rs 184.
Meanwhile today, Bajaj Finance stock hit an intraday all-time high of Rs 3,444.55 before closing up 3.22 per cent at Rs 3,407.55 on NSE. A little over 27 lakh equity shares of Bajaj Finance exchanged hands on NSE on May 20, 2019. In the last five years, Bajaj Finance had distributed Rs 72.6 in form of dividends, had offered bonus shares in ratio 1:1 and had a split in ratio 1:5.