India’s oldest inventory market benchmark S&P BSE Sensex breached the 50,000-mark on Thursday (Jan 21). The index surged 391.89 factors and hit an intraday document excessive of fifty,184.01. The Sensex has now practically doubled from its 52-week low of 25,638.9 hit on March 24, 2020.
The latest rise within the BSE benchmark has been triggered by international portfolio buyers (FPI) shopping for. Between April 1, 2020, and January 21, 2021, the FPIs have invested a web of Rs 2,41,021 crore into Indian equities, the best ever in any 12 months. The prospects of a bounce-back within the Indian economic system and reopening after coronavirus-led nationwide lockdowns have boosted investor confidence through the earlier quarter.
Here is Sensex’s journey to 50,000-mark
1. From 1,000 to 10,000 mark
Source: BSE
The Sensex breached the 1,000-mark for the primary time in 1990. The journey from 1,000 to 10,000 of the Sensex was eventful. In 1991, Prime Minister Rajiv Gandhi was assassinated, India was going by means of a stability of funds (BoP) disaster and Finance Minister Manmohan Singh opened up the Indian economic system to international corporations. The Sensex was largely in a spread of somewhat over 1,000 factors (discuss with the graph above by BSE).
Harshad Mehta rip-off
Stock dealer Harshad Mehta. (Express archive photograph by Vivek Bendre 15.7.93)
The market witnessed one among its first main monetary frauds within the type of a inventory market rip-off by inventory dealer Harshad Mehta in 1992. In a span of practically a 12 months, Sensex had rallied from round 1,200 to a document excessive of 4,467 and fell sharply after the rip-off was busted.
Bombay blasts
1993 Bombay blasts (Express archive photograph)
The blasts throughout town of Mumbai on March 12, 1993, affected the routine buying and selling as one of many bombs took off on the BSE constructing, however there was no main impression on the index. The Sensex was someplace 2,300-2,400 factors throughout these instances.
NDA victory, Kargil struggle
Army Jawans show weapons throughout celebrations of twentieth Kargil War anniversary in Drass. (Express Photo by Shuaib Masoodi 24-07-2019)
In 1999, the nation fought the Kargil struggle and Sensex touched 5,000 for the primary time led by a increase in expertise (IT) shares.
Ketan Parekh rip-off, Parliament assault, 9/11 assault
In 2001, the inventory market was plagued with a rip-off by Ketan Parekh, the Gujarat earthquake, terrorist assaults in India’s Parliament and the 9/11 terrorist assault within the US. The benchmark index misplaced its 5,000-mark and ended the 12 months at 3,262.33.
UPA victory
In 2004, Sensex noticed a month-on-month decline of practically 16 per cent when the UPA authorities received the Lok Sabha elections and Manmohan Singh grew to become the prime minister however slowly bounced again to finish the 12 months at 6,602.69.
2. From 10,000 to twenty,000 mark
A few years later in early 2006, it touched the ten,000 points-mark for the primary time resulting from a increase in commodity costs within the international markets. In late 2007, Sensex breached the 20,000-mark propelled by liquidity within the international market.
Mumbai assault, Global monetary disaster, Satyam rip-off, Commonwealth video games rip-off, 2G rip-off
In a brief span of time, Sensex got here beneath extreme stress as a result of international monetary disaster of 2008 which triggered a world market crash and international melancholy. Another rip-off hit the Sensex in 2009 when Satyam’s chairman and CEO B Ramalinga Raju stepped down following his admission to prepare dinner up the corporate’s accounts to the tune of practically Rs 7,100 crore.
Sensex through the monetary 12 months (FY) 2008-09 (April-March) noticed a year-on-year fall of 37.94 per cent and ended at 9,708.50.
In 2008, the nation had additionally witnessed the ghastly terror assault on Mumbai, the monetary capital of India.
In late 2010 and early 2011, the market was once more marred with Commonwealth (CWG) and Telecom (2G) scams however the impression was comparatively lesser because the Sensex was nonetheless recovering again slowly to its pre-global monetary disaster ranges. The Sensex ended FY 2012 at 17404.20, down 10.5 per cent from 19,445.22 in FY 2011.
3. From 20,000 to 40,000
NDA victory beneath Narendra Modi
The benchmark rose to a brand new excessive when the NDA authorities received the Lok Sabha elections and Narendra Modi was sworn in as the brand new prime minister in 2014. The Sensex had touched 25,375.63 in May 2014. It steadily inched larger and touched the 30,000-mark In March 2015.
Demonetisation and GST
When Prime Minister Narendra Modi introduced forex demonetisation in November 2016, the Sensex fell 4.57 per cent month-on-month to finish at 26,652.81. The items and companies tax (GST) was applied on July 1 2017 by Finance Minister Arun Jaitley beneath PM Modi’s authorities. During this month, Sensex gained 5.15 per cent on-month to finish at 32,514.94.
2018 was rocked with two monetary scams. The Punjab National Bank rip-off which got here to mild in February 2018 and the Infrastructure Leasing & Financial Services (IL&FS) rip-off which was found in September 2018. Needless to say that each these scams shocked the inventory markets momentarily, nonetheless Sensex nonetheless managed to register a acquire of 5.91 per cent on-year and ended 2018 at 36,068.33.
Hitting 40,000
Sensex touched the 40,000-mark for the primary time ever in May 2019 on the day the NDA authorities received its second time period. In late half of 2019, Finance Minister Nirmala Sitharaman introduced a company tax minimize to spice up the slowing economic system which offered additional momentum to the Sensex which inched to a document excessive 41,809.96 by December 2019.
Coronavirus, the inventory market crash and restoration
However, in March final 12 months, the Sensex slumped to its multi-year lows of 25,638.90 in March 24 after Prime Minister Narendra Modi imposed a nationwide lockdown to curb the unfold of coronavirus (COVID-19). But subsequently phased re-opening of the economic system ignited the feelings of an financial revival with market contributors betting on restoration and enchancment in company earnings.
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