Manmohan Singh’s reshaping of India’s stock market saw the Sensex surge 79 times since 1991.

BSE Sensex mirrored the optimism of the immediate post-liberalisation period, climbing around 263% in 1991-92 to 4,500 points.

As the nation pays homage to Manmohan Singh, the architect of India’s liberalisation, market analysts acknowledge his contributions, which have generated immense wealth for investors since 1991. Singh served as India’s finance minister from June 1991 to May 1996 under Prime Minister P.V. Narasimha Rao.

During this period, he spearheaded transformative economic reforms that liberalised India’s economy, opening it to global markets and fostering privatisation and globalisation. Later, he served as the 13th prime minister of India for two consecutive terms, from May 2004 to May 2014.

Trivesh D, COO Tradejini said Singh’s tenure as finance minister and later as prime minister fundamentally reshaped India’s stock market.

“His bold reforms, such as dismantling the License Raj in 1991, unlocked the potential of private enterprise, leading to a surge in companies listing on stock exchanges,” Trivesh D said. The BSE Sensex mirrored this optimism, climbing around 263% in 1991-92 to 4,500 points.

Palka Arora Chopra, Director, Master Capital Services said, “The Indian stock market has undergone remarkable transformations since the liberalisation reforms of 1991. Manmohan Singh, the then-finance minister of India, led a series of liberalisation measures that transformed India’s economic landscape and laid the foundation for modern India which included various regulations like the abolishment of License Raj, Trade Liberalisation and allowing foreign capital investment in India, among others.”

Singh also led various institutional reforms, including the formation of the market regulator Securities and Exchange Board of India (SEBI) as the regulatory authority, which marked a critical step in ensuring transparency and accountability in the stock market. India’s GDP growth averaged around 6.9% during Singh’s first term as India’s Prime Minister, underpinned by a boom in major sectors and increased infrastructure spending.

“The stock market soared as businesses expanded and foreign investors began to view India as an attractive destination. The period witnessed one of the strongest bull runs in Indian stock market history, driven by a combination of economic growth, structural reforms and rapid expansion,” Chopra said.

The benchmark equity index BSE Sensex rallied 382% under the two regime (2004-2014) of Manmohan Singh. “The rally in the stock market under Manmohan Singh reflects the impact of stable governance, rising foreign inflows, and infrastructure growth,” Trivesh D said. The 30-share index has gained 217% (from May 26, 2014-December 26, 2024) so far under the present prime minister Narendra Modi till date.

Overall, the Sensex which was around 1,000 in 1991 has multiplied about 79 times since then to trade nearly 79,000, delivering excellent returns to long-term investors.

VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, “The market will continue to deliver superior returns to investors in the years to come since the India Growth Story, which liberalisation triggered, is very much intact.”

Disclaimer: Moneywealth research provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

SEBI registered research analyst

Stock market

Accurate intraday tips

Call or whatsapp: +91 9924987385 / +91 7096190322

www.moneywealth.co.in