📷 Image Credits: CNBCTV18
The Sensex, India’s benchmark index, achieved a historic milestone on July 3, surpassing the 80,000 mark for the first time. What made this feat even more impressive was the remarkable speed of the latest 10,000 point rally, which occurred in just six months, marking the fastest 10,000 point rally ever recorded. The Sensex comprises the top 30 companies listed on the Bombay Stock Exchange (BSE), which is the oldest stock exchange in Asia and the tenth oldest globally.
The index is designed to reflect investor sentiment towards BSE-listed stocks, utilizing a cap-weighted methodology to select constituents based on factors such as liquidity, depth, and float-adjusted capitalization. The Sensex has a base date and value of 100 dating back to 1978-1979, serving as a crucial barometer for the Indian stock market’s performance over the years. Let’s delve into the key milestones of the Sensex’s journey over the past 18 years, as it surged from 10,000 to 80,000 points.
From its inception in 1986, the Sensex took various durations to achieve significant point milestones. For instance, it took 434 days to double from 10,000 to 20,000 points in 2006, reflecting the evolving dynamics of the market at the time. Subsequent milestones, such as reaching 30,000, 40,000, and 50,000 points, showcased different growth patterns and market conditions, each with its unique characteristics and challenges.
The standout achievement was the recent rally from 70,000 to 80,000 points, which only took 138 days, underscoring the index’s resilience and market performance. As the Indian economy continues to evolve, the Sensex remains a crucial indicator of investor confidence and the overall financial health of the country. Investors and analysts alike closely monitor the index’s movements to gauge market trends and make informed decisions. With the Sensex touching new highs, it will be intriguing to observe how the index navigates future challenges and opportunities, shaping India’s financial landscape for years to come.
