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In last eight years of Narendra Modi government, various steps like demonetisation, Goods and Services Tax (GST), Make in India, Digital India, Startup India, vocal for local, etc. have been taken by the central government that changed business and investment dynamics in India to a great extent. According to stock market experts, after demonization and GST implementations, unorganised business shifted towards organised mode through digitisation. They went on to add that programs like Make In India, vocal for local, Startup India, etc. helped Indian produce chemical and other sector products that it used to import earlier.

Speaking on how stock market fared after demonetization and GST implementations, Saurabh Jain, Vice President — Research at SMC Global Securities said, "After demonetization and GST implementations, unorganised business shifted towards organised operations via digitization. It helped listed organised companies to log surge in their quarterly numbers leading to rise in the liquidity for their business operations. Today, DIIs are able to counter-balance FIIs selling through mutual funds and insurance as liquid flow in the market has gone up post such steps taken by the Modi government."

On Modi government's eight years in office, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "In eight years of Modi government, IT and tech stocks have outperformed other sectors whereas chemical sector followed the IT and tech sector closely by delivering stellar return to its shareholders in this period. Barring one and half years of Covid-19 pandemic, volatility in crude oil prices were a big challenge for developed and developing nations and India was not an exception to it. So, investors moved towards IT sector as IT and tech stocks get least affected by rise crude oil prices. Apart from this, Modi government has been pro-active on tech and IT sector that boosted the sentiments of FIIs and DIIs. Post-Covid, chemical export from China has nosedived and Indian companies are getting benefit of it. They are able to meet this sudden rise in demand due to Make In India initiative that helped local companies to produce abundant chemicals, which they India used to import prior to 26th of May 2014."

During eight years of Narendra Modi government, Sensex has risen from near 24,700 to 56,000 mark today, ascending around 125 per cent rise in this period. Similarly, Nifty 50 went northward from near 7200 to 16,650 levels today, appreciating to the tune of 130 per cent in this period. In last 8 years, BSE Mid-cap index has surged from 8670 to 22,970 levels, ascending around 165 per cent whereas small-cap index has risen from around 9,125 to 26,185 levels, clocking to the tune of 185 per cent rise in these eight years.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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