As the Modi government's third term completes its first year, it's time to take a look at how the stock market has performed during this period. The overall trend has been positive, with most sectors showing healthy gains. While very few sectors have disappointed, several have stood out with exceptional growth, driven by favorable policy support and strong investor interest.
Starting with the market indices, the Nifty index gained around 6% over the year. The Bank Nifty outperformed with an impressive 12% rise. Meanwhile, the broader markets, including mid-cap and small-cap indices, witnessed gains of around 7–8%, highlighting strong participation across segments.
Among all sectors, defense emerged as the biggest outperformer. The defense sector index surged nearly 40% in the last one year. Individual defense stocks saw massive rallies. Garden Reach Shipbuilders and Engineers Limited (GRSE) recorded a staggering 164% increase. Other major gainers included Zen Technologies, Astra Micro, Apollo Micro Systems, and Bharat Dynamics. This strong rally was supported by key government decisions. One of them was the approval of a ₹400 crore emergency defense procurement under Operation Sindoor. Additionally, in March, the Defense Acquisition Council (DAC) cleared eight capital acquisition proposals worth ₹54,000 crore. The Indian Army also approved procurement deals totaling ₹85,000 crore. These developments strengthened the order books of defense companies and sparked investor optimism.
The second high-performing sector was travel and tourism. Stocks associated with this segment also delivered solid returns. Indian Hotels gained 37%, while ITC Hotels, Chalet Hotels, and Samhi Hotels rose by around 25–30%. This strong momentum was backed by major government initiatives. These included partnerships with various states to develop the top 50 tourist destinations in India, as well as the announcement of PLI schemes aimed at enhancing effective destination management.
Additionally, the government launched the 'Heal in India' initiative to promote medical tourism. Under this program, efforts were made to collaborate with the private sector to expand healthcare-based travel. The initiative aims to turn India into a global hub for medical treatment. To further boost domestic tourism, the government also announced the provision of Mudra loans to support homestay businesses.
In summary, the first year of Modi 3.0 saw the markets perform with steady gains across sectors. Defense and tourism emerged as the most promising areas, benefiting from strong policy backing and structural reforms. As India continues to push forward with focused sectoral development, these trends are likely to remain in the spotlight going forward.
Disclaimer:
This article is for informational purposes only and should not be construed as investment advice. Please consult your financial advisor before making any investment decisions.
