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Charts & Analysis

The “Real” Nifty, Adjusted for Inflation is 32% Below its 2007 Peak

When you adjust for inflation gains look terribly low. Inflation is how much your money’s purchasing power reduces. So you have to adjust for that, so let’s assume we invested X rupees in the stock market, got dividends and reinvested them, what would that money be today (in the same purchasing power that I originally invested them as)?

We are probably just 300 points from an all time high (5%) and but the difference if you consider dividends and inflation is much lower.

Nifty Adjusted for Inflation

This is only with WPI inflation. With CPI, which is at 9% but doesn’t have such a big history, things are much worse!

Note: Reader Nikhil asks me to put in the Nifty TRI (Total Returns Index) for a comparison. Your wish is my command!

Nifty adjusted, plus TRI

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