Year-Wise Analysis of Companies Listed in the National Stock Exchange (NSE)

1995-2000: Early Growth Phase

1995 saw the epitome of listing with 165 companies listed, due to Liberalization, Privatization, and Globalization (LPG) reforms in the early 90s. NSE commenced operations in 1994 with the launch of the wholesale debt market. However, the listings dropped sharply over the next few years:

• 1996: 63 companies
• 1997: 31, and so on till 1998 and 1999 with just 25 and 28 listings respectively

The decline may be due to the Asian Financial Crisis (1997) or Kargil Conflict(1999). By 2000, the number of companies listed picked up again, reaching 53.

2001-2009: Stability and Recession Impact

Furthermore, the listings dropped to 17 in 2001, due to the Disinvestment policy of the Vajpayee Government and dot- com bubble. A stable rise in the number of listings in the early 2000s

• 2003 had 68 new listings, and by 2006, the numbers peaked at 94.

There was a huge surge in companies listed in 2007 with?130?companies listed, probably due to the global boom before the?financial crisis?of 2008. However, in 2008 and 2009 the count fell to 55 and 26 respectively, reflecting the impact of the global financial crisis on the Indian Financial markets

2010-2017: Recovery and Stability

Indian markets witnessed a strong recovery after the financial crisis. The number of companies listed remains relatively stable.

• 2010, shows market optimism as 78 companies were listed.
• From 2015 to 2017, the number of listings stabilized at around 76 to 78.

The recovery reflects the confidence of investors in the Indian economy and the new Modi Govt. The single-party majority Government in parliament brought economic stability to India and this economic stability was facilitated by various governments such as Pradhan Mantri Jan Dhan Yojana (PMJDY), Ease of Doing Business through PM MUDRA Yojana, Real Estate (Regulation and Development) Act, 2016, Insolvency and Bankruptcy Code, 2016 and National Asset Reconstruction Company Limited, etc. Other initiatives that shows the seriousness of the government towards the economy were StartUp India, SatndUp India, Make in India, and the Production Linked Incentive Scheme(PLI).

2018-2024: Recent Trends

Recent trends signify a stable market condition with some fluctuations, but no major drop-offs. In 2021, the second highest number of Companies listed (152) since 1995, possibly driven by the post-COVID recovery and the rise of new industries like Artificial Intelligence, Big Data, Risk management, and Cyber Security, etc. However, the listings fell to 119 in 2022 and then slightly dropped again to 103 in 2024 (estimated).

After 2021 being a year of aggressive market optimism, there is normalization of the market and now companies are carefully evaluating their listing decisions.

Conclusion

The activity and volume of trade in the stock exchanges have been a reflection of both global and local forces. This year-wise data of company listings on the NSE tells a story of India's economic journey. The fluctuations and recoveries over the years show both economic opportunities and challenges in India's growth story.

Data Source: https://www.nseindia.com/market-data/securities-available-for-trading