It took another 6.4 years to reach the 7,000 mark in May 2014. Since inception, the index has given an annualised return of 11.2 per cent while having annualised volatility of 24.5 per cent.
In recent periods, however, volatility has reduced to 8-11 per cent. The return-to-risk ratio of the Nifty has also improved substantially over the years from 0.46 since inception to 1.98 in the last six month period.
There are only 15 stocks which have been present in the index since inception. The recent rally in the index is being attributed to a change in its sectoral weightages. The weight of financial services sector has increased from 19.7 per cent in 1995 to 38 per cent currently.
"Nifty from its launch, took more than 21 years to be 10x to touch 10,000. I’m sure next 10x ie 100,000 will take much shorter time" said Nirmal Jain, chairman, IIFL.
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