Nasdaq Composite vs Nifty: Which Index Delivered Better Returns Over the Last 10 Years?

Synopsis: Ten years, two markets, one clear winner. The Nasdaq Composite and the Nifty 50 have taken very different paths since 2016, and the gap between them tells a bigger story than just index points. From tech-driven rallies to currency swings, here’s a closer look at what really separates US and Indian equity performance over the last decade and what it means for investors on either side.

A decade is long enough to see which market really delivers. Comparing the Nasdaq Composite and the Nifty 50 over the last 10 years shows a clear winner. Both indices have made money for long-term investors, but the US benchmark has pulled far ahead of India’s blue-chip index. This article looks at how each index got here, what drove the gap, and why things like currency and dividends matter when comparing the two.

Two Benchmarks, Two Different Economies 

The Nasdaq Composite and the Nifty 50 serve as nicknames for the “Top US stocks” and “top Indian equities” in turn, but both of these indices have quite different compositions. The Nasdaq Composite monitors over 3,000 firms traded on the Nasdaq exchange, the composition of which consists mainly of technology, biotech, and growth firms, where the Nasdaq-100 index alone makes up about 75-80% of the total weight. 

On the other hand, the Nifty 50 is a 50-company market capitalisation-weighted index that includes Indian blue-chip companies from various sectors like banking, IT, energy, FMCG, and automobiles managed by NSE. A comparison of the two indices over a period of ten years will be interesting to see how the concentrated and innovation-driven US market has fared against the diversified emerging Indian market index.

Nasdaq Composite’s 10-Year Journey

In the first week of July 2016, exactly ten years ago, the Nasdaq Composite was trading between the 4,800 and 4,950 levels, rebounding from the 2016 global growth scare in the beginning of the year and Brexit vote-induced selling in June 2016. As of July 1, 2026, the index closed at approximately the 26,150-26,200 level, with an all-time closing high at 27,150.

The past decade witnessed some of the most important events in Nasdaq’s history – breaking above the 6,000 level in April 2017; COVID-19-driven crash and rapid recovery in 2020; rate hike-induced correction in 2022 of about 33%; and AI-fuelled rally that brought the index from approximately the 20,000 level in December 2024 to above the 27,000 level in 2026. On an approximate basis, this would amount to more than a 5 times gain or a roughly 462% gain.

Nifty 50’s 10-Year Journey

The Nifty 50 index was hovering around the 8,270-8,300 range in early July 2016. By July 2, 2026, the Nifty 50 was at 24,175.70 after reaching a record closing peak of 26,373 in January 2026. It should be noted that the index has actually fallen by about 5 to 6% over the last 12 months due to FIIs pulling out, global interest rate uncertainty, and geopolitical events, including the Iran-led oil price movements mentioned in June 2026.

In the past decade, the Nifty 50 has touched several psychological barriers, such as 10,000 in July 2017; around 21,000 following the 2024 general election pullback and recovery; and 26,373 close to the 2026 January peak, aided by India’s domestic consumption growth. savings moving into financial assets, corporate profit growth, and some periods of strong FII/DII buying. That translates into more than 3 times the move or about 220% in cumulative terms over ten years.

Head-to-Head: CAGR and Absolute Returns 

The Nasdaq Composite moved from roughly 4,850 in July 2016 to about 26,150–26,200 by July 2026, a gain of more than 5x, or roughly 462%, translating to an annualised return of approximately 18.5–19% in US dollar terms, while the Nifty 50 moved from around 8,270–8,300 to 24,175.70 over the same span, a gain of more than 3x, or about 220%, translating to roughly 12–12.5% annualised in rupee terms, meaning the Nasdaq has outperformed by close to 1.5 to 1.6 times on a CAGR basis, even before accounting for dividends since both figures are price returns rather than total returns.

The Currency Factor: Why INR Depreciation Matters 

For an investor in India looking at performance across the world, conversion of currency is important. The Indian Rupee has depreciated significantly against the US Dollar during this period, from Rs 67 per USD in the middle of 2016 to Rs 95 per USD on July 2, 2026, which is a depreciation of about 41%.

This implies that with the conversion of Nasdaq’s return denominated in dollars into rupees, the difference between the performance of Nasdaq and Nifty 50 is increased even more for the Indian investor who has invested in the USA. For the American investor who has invested in the Nifty 50 through ETFs, this depreciation of the rupee has decreased the dollar-denominated return from the Nifty 50 significantly.

What Drove Nasdaq’s Outperformance 

There are several structural reasons for the success of the Nasdaq index for the decade under discussion. Firstly, the dominance of mega-cap technology companies made the largest contribution to this success since firms such as Apple, Microsoft, Nvidia, Amazon, Meta, and Alphabet had huge increases in income and growth in valuations, especially after 2020 and later in the new AI investment cycle between 2023 and 2026. 

Secondly, the extremely low interest rate period of 2020-2021 increased the valuations of growth stocks, although the reverse occurred in 2022, but the situation was later compensated for by the capex boom connected with artificial intelligence. 

Thirdly, global capital flows were favorable for the index since, during times of dollar appreciation, the USA remains the natural place for investing global risk capital, and Nasdaq-listed growth stocks benefit from this process. Finally, the specific time of an innovation cycle contributed to the success of the Nasdaq index.

What Drove Nifty 50’s Steady Climb 

A more balanced and sustainable trajectory of the Nifty 50’s growth is attributable to different dynamics. Domestically driven demand and economic formalisation made a big impact in this case, as the introduction of GST, digital payment solutions, and the rising of the middle-class population helped in growing corporate profits at a moderate pace without dramatic increases. 

Financialisation of household savings also provided a sustainable tailwind, as the movement of savings from physical assets such as gold and real estate to mutual funds and stocks via SIP contributed to domestic institutional buying, making the index less sensitive to volatility associated with FIIs in recent years. Growth of corporate profits was diverse too and included double-digit profit growth of banks, IT services, and selected industrials throughout the decade. 

At the same time, the index experienced a number of shocks during this period, including demonetisation in 2016, the IL&FS crisis in 2018, the pandemic crash in 2020, and new episodes of volatility due to interest rate changes and geopolitics during 2024-2026, causing multiyear drawdowns.

Key Takeaways for Investors 

The Nasdaq has beaten the Nifty 50 by about 1.5 times on an annual return basis over the last 10 years, mainly because of big US tech stocks and the AI boom. Currency also plays a big role here; the rupee has weakened about 41% against the dollar since 2016, which makes the Nasdaq’s lead even bigger for Indian investors holding US stocks. 

The two markets also fall differently: Nasdaq tends to have sharper crashes like in 2022, while Nifty falls more often but less steeply. Before comparing returns like this, remember to factor in dividends, valuations, and your own currency exposure.

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