Sensex, the benchmark index of the Bombay Stock Exchange, has touched 60,000 points for the first time, gaining 20% in value over the span of just eight months, when it touched the 50,000 mark in January this year. The record rally in markets have been in action since April 2020, when it's rally started from just under 26,000 points.
It touched a high of 60,333 points intraday. The index is currently trading at 60,098 points as of 2:57 pm.
The index has come a long way since the start of the century, when it was at 6,000. It touched 40,000 points for the first time on May 23, 2019, on the day of counting of the results of the elections to the 17th Lok Sabha, when Prime Minister Narendra Modi won a landslide second term.
Sensex: Born a 100
The BSE Sensex was established on April 1, 1979, with a base of 100 points. However, the exchange started to formally publish the value of the index in 1985, when its value was hovering around the 400 mark.
The first 10,000
On February 6, 2006, the index hit its first 10,000 points, reaching 10,002.83 points in intraday trade, but it receded to 9,980.42 when it closed. It was only until the next day, on February 7, 2006, that Sensex closed at 10,082.28 points. It took a little less than 27 years to reach this milestone, growing from 100 points to 10,000 points.
The index touched 20,000 points, for the first time on October 29, 2007, when it touched 20,024.87 points intraday.
According to Kotak Securities, this rally was driven by institutional investors and aggressive retail buying.
The long journey to 30,000
On March 4, 2015, Sensex crossed this mark for the first time, touching 30,024.74 intraday. While the index went from 10,000 to 20,000, growing 100%, in a little more than 18 months, it took a little less than 8 years to get to the next 10,000, growing only 50%.
In the interim, the lull was created due to the global financial crisis of 2008.
In October 2008, it fell below 8,000 points. However, the Sensex recovered from there, until it hit 25,000 points in May 2014, when Prime Minister Narendra Modi assumed office for the first time.
From there, it reached 30,000 points in a little less than a year. Kotak Securities attributes this rise to the ample global liquidity made available by central banks across the world.
In just a little more than 4 years, Sensex reached 40,000 points on May 23, 2019, giving returns of 33.33%.
It was the day of counting of the results of the elections to 17th Lok Sabha, and Sensex touched this mark for the first time - at 40,124.69 points - when the trends showed that the Prime Minister Narendra Modi-led Bharatiya Janata Party government was poised to win a second term in office. Even though the index closed lower than the previous day, at its high, the index rallied nearly 2.5%.
At 50,000 points
Sensex touched 50,000 points for the first time on January 21, gaining the next 25% in just over a year.
This happened as Indian witnessed the start of the vaccination drive against COVID-19, and record corporate results.