From 7500 to 22500: Nifty Rallies 200% After COVID Fall in the Past 4 Years

COVID-19’s fall, wait, don’t worry, we are not revisiting the COVID downturn. Instead, in this article, we will analyze Nifty’s remarkable rally of 200% over the past four years, starting from when the Nifty hit a low of 7511 levels on March 24, 2020. You might wonder why we’re covering this topic again. Well, the reason is that Nifty hit a COVID low on March 24, 2020, and last Saturday marked four years since that day. During this period, it has rallied approximately 199.91%, hitting an all-time high of 22526.60 just this month.

Before the COVID fall, Nifty reached an all-time high of 12430.50 in January 2020. However, after the fall, it reclaimed this high in November 2020, which took approximately 231 days, and began trading around the same pre-COVID levels. Following this breakout, Nifty surged around 81% to reach its all-time high of 22526.60 this month, within approximately 1219 days or roughly 3.5 years.

Currently, Nifty is trading at around 22,000, which is approximately 526 points or 2.4% lower than its all-time high levels.

Nifty50 Versus Dow Jones

When we compare the return of the Nifty Index return with the US market Index Dow Jones then below are the findings.

Looking at the data, it’s evident that Nifty rallied and outperformed the US market index, Dow Jones, during the same period. Despite the fact that the Nifty fell by approximately 1% more than the Dow Jones from their respective highs during the pandemic, the Nifty50 managed to rally around 200%, whereas the Dow Jones rallied around 119%. This demonstrates the resilience and strength of the Indian stock market compared to its US counterpart during this period.

Top 6 most rallied stocks in Nifty50 are

Expecting a rally of over 500% is challenging, especially in the short run. In the long term, stocks tend to follow the fundamental growth of the company. The companies within the Nifty50 index were once small fish in the stock market sea. However, through demonstrating consistent performance and continuous growth, they eventually evolved into significant players, akin to sharks in the stock market. Here are the six companies which rallied the most during the same period.

Despite allegations from the short-seller Hindenburg Research, Adani has topped the list by showcasing an impressive rally of over 2500% during the same period. Another notable stock is Tata Motors, which has rallied over 1000%. Additionally, this month it crossed a significant milestone of Rs 1000 per share, although it is currently trading at Rs 986 per share.

Conclusion

In a nutshell, over the past four years, the Nifty50 index has surged by approximately 200% from its COVID-low in March 2020, showcasing the resilience of the Indian stock market. Compared to the Dow Jones index, Nifty outperformed with a remarkable rally. Additionally, Adani Enterprises and Tata Motors have seen remarkable gains, demonstrating the potential for growth despite challenges. Other prominent names such as Mahindra & Mahindra, Hindalco, IndusInd Bank, and Adani Ports were also part of the over 500% return during the same period.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.