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India’s equity index Nifty50 turned 25 years old on Thursday. It was launched in April 1996, when it traded at 1,107, with the base year of November 1995 set as 1,000.

According to a report by Moneycontrol, if the 50 stocks in the Nifty, 13 companies – HDFC Bank, RIL, HDFC, ITC, HUL, L&T, SBI, Tata Motors, Dr Reddy’s Labs, Tata Steel, Grasim, Hero, and Hindalco – have been a part of the index’s journey since inception.

Nifty50 is a benchmark equity index and it shows the weighted average of India’s top 50 companies, across sectors, that are listed on NSE. With time, many components of the index exit the group while the new ones enter.

Over the years, the sectoral representation of the Nifty has also changed tremendously and remains in consonance with the changes in the underlying economy. For the first time in history, Nifty closed above the psychological mark of 15,000 on February 8, 2021.

The combined market cap of these 13 companies has grown at a CAGR of 18 per cent between April 1996 and February 2021, said the brokerage firm, said a report from brokerage firm Motilal Oswal Financial Services.

The average P/E multiple of the Nifty between April 1996 and February 2021 stands at 15.7 times; however, the average for the last 10 years is 18.8 times, said the brokerage firm.

The Nifty (up about 14 times) has delivered 11.1 per cent CAGR returns in the last 25 years. The double-digit compounding returns of Nifty50 over the last 25 years reflect the underlying growth potential of India across various sectors.

On April 22, 2021, the index closed 110 points, or 0.77 per cent, higher at 14,406.15.