In 1991, Sensex was 1000 points, how Manmohan Singh decision change stocks scenario
Whole country is paying tribute to former Prime Minister and former Finance Minister Manmohan Singh (Manmohan Singh Passes Away). He died on Thursday at the age of 92 in AIIMS Hospital, Delhi. The steps taken by Manmohan Singh, known as the father of liberalization in the country, not only gave a new shape to the country's economy but also to the stock market, which gave investors an opportunity to earn a lot of money from the market, which is still continuing.
Manmohan Singh, known as father of liberalization
Manmohan Singh became the country's finance minister in 1991 and since then the Bombay Stock Exchange's 30-share Sensex has grown 79 times. Let us see what role the late former Prime Minister Manmohan Singh played in the market reaching this position today? When he was the Finance Minister in the year 1991, the Sensex was around 1000 points, but the steps taken by him gave a new shape to the stock market.
Manmohan Singh work as Finance Minister
Manmohan Singh was the Finance Minister from 1991 to 1996 in the government of P.V. Narasimha Rao. The impact of the economic reforms done during his tenure was clearly visible on the Indian stock market. He liberalized the Indian economy with his policies and steps taken for economic reform and opened the Indian market for foreign companies by ending the license raj. This fundamentally reshaped the Indian stock market.
Sensex ran up due to Manmohan Singh's decisions
According to a market expert Manmohan Singh's bold step as Finance Minister, such as ending the license Raj in 1991, opened up the possibilities of private enterprise, which led to a sharp rise in the listing of companies on stock exchanges. In 1991-92 alone, the BSE Sensex rose by about 263% to reach 4,500 points, which was at just 1000 points in 1991.
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Ending the license Raj in 1991
Not only this, when Manmohan Singh became the Prime Minister of the country, the Sensex also made a big leap during his two tenures. Trivesh D says that the benchmark equity index Sensex registered a strong 382% growth in 2004-2014. The impact of increasing foreign investment and infrastructure growth was clearly visible on the stock market.
Big changes seen in the stock market
Manmohan Singh also led various institutional reforms, including the formation of the Securities and Exchange Board of India (SEBI) as a regulatory authority on 4 April 1992, which was an important step towards ensuring transparency and accountability in the stock market. The effect of his corrective steps was also seen on the country's GDP and during Manmohan Singh's first term as Prime Minister, GDP growth averaged 6.9%.
Experts said - the impact of his work is still there
The BSE Sensex was at around 1000 in 1991, since then it has increased by about 79 times. However, in the year 2024, it has also crossed 85000. But despite the decline in the last few days, it remains around 79,000. Not only this, the market has given positive returns to investors for the 9th consecutive year. However stock market investors will continue to get better returns in the coming years, because India's growth story inspired by Manmohan Singh's liberalization is still intact.
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