Nifty’s journey to 24,000: Latest 1,000-point surge achieved in record 17 sessions

The Nifty-50 reached the 24,000 mark on June 27, 2024, closing above this level for the first time. This latest 1,000-point rally was the fastest ever, taking just 0.8 months or 17 sessions, highlighted brokerage house Geojit Financial Services in a recent note. Additionally, the index has added 5,000 points over the past year.

The bullish trend in the Indian market has shown unwavering strength, with the bears finding little room to maneuver. Setting new records, surpassing milestones, and establishing fresh benchmarks have become routine occurrences during this recent surge. As a result, major Indian indices have continuously exceeded their previous highs, extending a period of sustained positive momentum. On Friday, the Nifty 50 marked another significant achievement by surpassing 24,100 points, reaching an all-time high of 24,174 points during today's trading session.

It further informed that on June 27, 2024, the NSE's total market capitalization was reported at ₹434.7 lakh crore. The remarkable 1,000-point journey of the Nifty from 23,000 to 24,000 contributed an impressive ₹12.2 lakh crore to this market cap, revealed the report. This growth was further bolstered by an influx of new issues and fresh listings over the years, enhancing the market's depth and offering investors a wider array of investment opportunities. The sustained addition of these new listings has played a crucial role in augmenting the overall market capitalization, reflecting the increasing dynamism and robustness of the Indian equity market.

The brokerage also noted that the average Nifty-50 EPS for June 2024 is estimated to be around ₹1,052, according to the reported P/E ratio. This robust growth is reflected in the compound annual growth rates (CAGR) over various periods: a 22 percent increase year-over-year, 14 percent over the past two years, an impressive 24.8 percent over the past three years, 21 percent over the past five years, and 11.1 percent over the past decade, it observed. These figures highlight the consistent and strong earnings growth of the Nifty-50 companies, showcasing their resilience and ability to generate substantial profits over time.

Nifty50 - the journey from 1,000 to 24,000

The Nifty 50 index began its journey in November 1995 with a base value of 1,000 and reached 20,000 on September 11, 2023, spanning 27 years, 10 months, and 8 days. The index's progress through each 1,000-point milestone has varied: it took 9 years, 1 month, and 10 days to reach 2,000 on December 14, 2004. Subsequently, it surged to 3,000 in just 1 year and 2 months, hitting that mark on January 31, 2006, and to 4,000 on December 4, 2006, followed by 5,000 on September 27, 2007, each within approximately 1 year and 10 months. The journey to 6,000 took a little over 2 months, achieved on December 11, 2007. Reaching 7,000 was one of the longest stretches, taking 6 and a half years, while the jump to 8,000 happened swiftly in just 4 months on September 1, 2014.

However, it took the Nifty 2 and a half years for the next 1,000-point rise, crossing the 9,000 mark on March 14, 2017. From 9,000, the index touched the 10,000 mark in just 4 months on July 26, 2017. While the journey to the first 10,000 mark took almost 22 years, the climb to 20,000 took a little over 6 years. The index hit 15,000 on February 8, 2021, and then in just 2 and a half years, it climbed the next 5,000 points to reach 20,000. Its journey from 20,000 to 21,000 took just 61 sessions, reflecting rapid market movements. This feat was achieved on December 14, 2023.

From 21,000 to 22,0000, it took Nifty a little over a month and was hit on January 15, 2024. After that, it took the benchmark almost 5 months to hit the next 1000 points. Nifty hit the 23,000 mark earlier this month on June 2, 2024. Since then it has even taken less than a month to hit the new 24,000 milestone.

The overall journey of the Nifty 50 index from 1,000 to 24,000 has been eventful, encompassing periods of economic growth and downturn. Throughout these fluctuations, the index has consistently created significant value for investors over the years.