NIFTY50 2015–2025 Recap: How Did the Benchmark Deliver Over 12% Annualised Returns?

The NIFTY50 has delivered an impressive 12.64% annualised return (CAGR) over the past decade, outperforming most Asian peers like Nikkei (+10%), Dow Jones (+10.7%), and the UK’s FTSE (+4.7%). Only Nasdaq (+16.6%) surpassed it during the same period. This decade-long performance reflects India’s resilient equity markets and strong economic fundamentals.

NIFTY50 2015–2025 Recap: Key Reasons Behind the Decade-Long Rally

Policy and Budget Reforms

Government reforms played a crucial role in supporting markets. Over the years, tax reforms and increased capital expenditure boosted consumption and infrastructure growth. Notably, the 2025 budget offered relief to taxpayers with income up to ₹12 lakh tax-free and a 20% rise in capex, strengthening investor confidence.

Favourable Monsoon and Rural Demand

Consistently favourable monsoons across the decade supported agriculture, rural income, and consumer demand. In 2025, a strong monsoon led to a 15% YoY jump in paddy and pulses output, keeping inflation low and stimulating rural consumption. This helped FMCG, automobile, and tractor sectors deliver strong volumes.

GST Rationalisation and Reforms

Goods and Services Tax (GST) reforms reduced tax rates on major products from 28% to 18%, 12%, and 5%, boosting demand ahead of festive seasons. These reforms, especially in 2025, revitalised consumer spending and contributed to NIFTY50’s momentum.

Supportive Monetary Policy

The Reserve Bank of India maintained a growth-oriented stance, reducing the base rate from 6.25% to 5.25% in 2025 and fostering credit growth. Over the decade, RBI’s balanced approach, combining accommodative policies with inflation control, sustained investment and consumption trends.

Strong Corporate Earnings

Companies in FMCG, automotive, finance, and banking consistently reported growth, supported by rural and urban demand, GST benefits, and sector-specific tailwinds. In 2025, Q2FY26 earnings reflected these trends, with FMCG volumes up 8–10% and strong automotive sales growth.

Read more: India VIX 2025 Recap: Down 33% Supported by Stable Equities and Inflows.

Key Risks Over the Decade

Despite strong returns, NIFTY50 faced headwinds such as global trade tensions, FII outflows, and occasional market corrections. Investors have also navigated short-term volatility arising from geopolitical events and domestic policy uncertainties.

Conclusion

The NIFTY50’s 12%+ annualised returns from 2015 to 2025 highlight the resilience of India’s equity markets. A combination of government reforms, favourable monsoons, GST rationalisation, supportive RBI policies, and strong corporate earnings sustained long-term growth. While external risks remain, the decade-long performance underscores India’s attractiveness for equity investors with a long-term horizon.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.