As CNBC-TV18 celebrates the NSE Prosperity Day, Nigel D’Souza explains how the market has performed and which were the biggest wealth creators and destroyers in the last 5 years.
In the last few days, everyone has been talking about the way the Nifty has moved from around that 10,000 mark to around that 10,500 odd mark. so let us look at various bottoms and tops as well.
Looking at the Nifty, one can see that in a 10-year bottom to the 10-year top, it looks quite interesting because in terms of compounded annual growth rate (CAGR) returns, the bottom is around 18 percent on a 10-year time horizon. Not just that, the midcap index does relative outperformance and from the bottom of the midcap index to the top of the midcap index on a CAGR basis, that is more than 22 percent odd.
From a five-year perspective, it is divided into two parts. One is 2008 to 2013 and the other one is from 2013 to 2018. So 2008 it looked like all gloom and doom and the highest level in that five-year period – the CAGR return would be more than 20 percent and if one looks at the recent five-year period that is 2013 to 2018 then the lowest level was in August 2013. From there 5,120 to around 11,760 which means that it is 18 percent in terms of a CAGR basis.
Similarly in terms of midcap, that always does relative outperformance and the five-year CAGR between the bottom and the top is more than 23 percent. While in the last five years, that is doing quite well if you are looking at the bottom to the top in terms of CAGR returns.
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