The Sensex story: 1,000 to 15,000! Rediff Business Desk July 06, 2007 Despite weak global cues, Indian stocks were in great demand, especially auto, pharma, IT and metals stocks. On Friday, this lifted the Bombay Stock Exchange's benchmark 30-share Sensex past the magical 15,000-mark. (See below for the timeline). The unprecedented Bull Run started on May 6, 2003 when the Sensex was at 3,001.21 level. In took just 67 trading sessions to cross the 4,000-mark and touch 4,026.27 points on August 19, 2003. The rally continued and the index gained another 1,000 points in 54 trading sessions to post 5,068.66 points on November 3, 2003. Thereafter, it pierced through the 6,000 mark on January 2, 2004 in another 43 trading sessions. The market then seemed to pause for breath as it took a whopping 370 trading sessions to cross the 7,000 mark, at 7001.55 on June 20, 2005. From 7,000-mark, the sentiment turned distinctly firm following good liquidity that played a significant role to determine the market direction and Sensex crossed 8,000-mark in just 55 trading sessions at 8,060.26 on September 8, 2005 and 54 trading days to cross 9,000-mark at 9,005.63 on November 28, 2005. From 9K to 10K, it took just 48 trading sessions. The index crossed 10,000-mark on February 6, 2006 at 10,002.83. From 10K to 11K, it only took 29 trading sessions. The Bombay Stock Exchange, the oldest stock exchange in Asia, was established in 1875 as the Native Share and Stock Brokers Association at Dalal Street [Get Quote] in Mumbai. A lot has changed since then when 318 persons became members upon paying Re 1. In 1956, the BSE obtained permanent recognition from the Government of India -- the first stock exchange to do so -- under the Securities Contracts (Regulation) Act, 1956. The Sensex, first compiled in 1986, is a 'Market Capitalisation-Weighted' Index of 30 component stocks representing a sample of large and financially sound companies. The BSE-Sensex is the benchmark index of the Indian capital markets. The BSE Sensex comprises these 30 stocks: ACC, Bajaj Auto [Get Quote], Bharti Tele, BHEL, Cipla, Dr Reddy's, Gujarat Ambuja [Get Quote], Grasim [Get Quote], HDFC [Get Quote], HDFC Bank, Mahindra & Mahindra, Hindalco [Get Quote], HLL [Get Quote], ICICI Bank [Get Quote], Infosys [Get Quote], ITC, L&T, Maruti [Get Quote], NTPC, ONGC [Get Quote], Ranbaxy [Get Quote], Reliance, Reliance Energy [Get Quote], Satyam [Get Quote], SBI [Get Quote], Tata Motors [Get Quote], Tata Power [Get Quote], TCS [Get Quote], Tata Motors and Wipro [Get Quote]. Following is the timeline on the rise and rise of the Sensex through Indian stock market history. 1000, July 25, 1990 On July 25, 1990, the Sensex touched the magical four-digit figure for the first time and closed at 1,001 in the wake of a good monsoon and excellent corporate results. 2000, January 15, 1992 On January 15, 1992, the Sensex crossed the 2,000-mark and closed at 2,020 followed by the liberal economic policy initiatives undertaken by the then finance minister and current Prime Minister Dr Manmohan Singh. 3000, February 29, 1992 On February 29, 1992, the Sensex surged past the 3000 mark in the wake of the market-friendly Budget announced by the then Finance Minister, Dr Manmohan Singh. 4000, March 30, 1992 On March 30, 1992, the Sensex crossed the 4,000-mark and closed at 4,091 on the expectations of a liberal export-import policy. It was then that the Harshad Mehta scam hit the markets and Sensex witnessed unabated selling. 5000, October 8, 1999 On October 8, 1999, the Sensex crossed the 5,000-mark as the BJP-led coalition won the majority in the 13th Lok Sabha election. 6000, February 11, 2000 On February 11, 2000, the infotech boom helped the Sensex to cross the 6,000-mark and hit and all time high of 6,006. 7000, June 20, 2005 On June 20, 2005, the news of the settlement between the Ambani brothers boosted investor sentiments and the scrips of RIL [Get Quote], Reliance Energy, Reliance Capital [Get Quote] and IPCL [Get Quote] made huge gains. This helped the Sensex crossed 7,000 points for the first time. 8000, September 8, 2005 On September 8, 2005, the Bombay Stock Exchange's benchmark 30-share index -- the Sensex -- crossed the 8000 level following brisk buying by foreign and domestic funds in early trading. 9000, November 28, 2005 The Sensex on November 28, 2005 crossed the magical figure of 9000 to touch 9000.32 points during mid-session at the Bombay Stock Exchange on the back of frantic buying spree by foreign institutional investors and well supported by local operators as well as retail investors. 10,000, February 6, 2006 The Sensex on February 6, 2006 touched 10,003 points during mid-session. The Sensex finally closed above the 10K-mark on February 7, 2006. 11,000, March 21, 2006 The Sensex on March 21, 2006 crossed the magical figure of 11,000 and touched a life-time peak of 11,001 points during mid-session at the Bombay Stock Exchange for the first time. However, it was on March 27, 2006 that the Sensex first closed at over 11,000 points. 12,000, April 20, 2006 The Sensex on April 20, 2006 crossed the 12,000-mark and closed at a peak of 12,040 points for the first time. 13,000, October 30, 2006 The Sensex on October 30, 2006 crossed the magical figure of 13,000 and closed at 13,024.26 points, up 117.45 points or 0.9%. It took 135 days for the Sensex to move from 12,000 to 13,000 and 123 days to move from 12,500 to 13,000. 14,000, December 5, 2006 The Sensex on December 5, 2006 crossed the 14,000-mark to touch 14,028 points. It took 36 days for the Sensex to move from 13,000 to the 14,000 mark. 15,000, July 6, 2007 The Sensex on July 6, 2007 crossed the magical figure of 15,000 to touch 15,005 points in afternoon trade. It took seven months for the Sensex to move from 14,000 to 15,000 points.
IMHO, as long as there is a continued economic relationship with China, India's expansion will continue. India is the balancing point to China (as well as Pakistan). Their sovereignty & success is essential to countering concerns for Chinese expansion & aggression. 1 billion Hindis = 1 billion Chinese. The mathematics are compelling from a geopolitical balance of power standpoint. Of course, once China tanks, there is little reason to keep India afloat either. The two should track.
You will be surprised to know in India,only 35- 40% population speaks Hindi as mother tongue! Hinduism as a majority religion(85%) is the umblical chord. Christians -5%,Muslims-10% (Turban wearing sikh less than 1%) English is the common bridge language .Courts use English only.Constitution is written in English -not Hindi. (Correct me if Iam wrong!) National anthem is ofcourse in Sanskrit/Hindi. Most southern state's native population (dark skin) look totally different compared to the north (fair skin akin to pak/egypt/syria). There are 5-7 states in the east bordering Nepal/china etc where people have mongoloid features but speak local dialect (not chinese) Tamil,Malayalam,Telegu,Kannada,Marathi,Konkani,Bengali are major languages each with different scipt,literature!(more than 20 major languages are there apart from so many dialects).Above mentioned languages - each population around 70-100 million ( say around 10% of total popualtion) English proficiency/wealth/business is concentrated in West/Southern states. If iam not mistaken , the most developed place in China is southern china( cantonese speaking) Political power is in Peiking (Mandarin) I think may be around 5 -10 minor dialects are there in china. But all dialects use the same script unlike in India. yours truly Indian !! dont know/speak any Hindi .only English+ mother tongue.
No, the two do not "Track" much. The Chinese and Indian economic growth are different in many areas. The Chinese economy is being centrally controlled with the export interests dictating economic policy along with speculative capital inflows from the foreign Chinese diaspora ( in Taiwan, Hong Kong etc ). A tightening of global liquidity and any protectionist policies in the west will heavily impact the Chinese economy as the speculative capital exits. They have 1 Billion population and still can't produce qualified engineers and technicians. The Chinese are good at one thing only. Stealing others product ideas and replicating massive numbers of inferior copies before the next WTO sanctions. The Indian economy is more internally focused and much of the capital inflow is non speculative, the investors are there for the long haul. India has more world class corporations than China because they graduate better quality of engineers. Indians speak English and therefore have a huge lead over the Chinese in the global Anglo-Saxon dominated economy. However both these economies do have one ignominious similarity. Rampant, unchecked, un-mitigated and massive levels of corruption at every single level of government.
It´s alway a good idea to watch out for opportunities on a global scale => SENSEX is a great market and there is more to come !!
be honest, years ago the Japanese used to do the same thing namely, stealing others product ideas and replicating, they do it with cars & electronics. its not true that the chinese can't produce qualified engineers and technicians, they r all in states and elsewhere, why do u think there is a high proportion of asians that excel in western universities, same goes /w the indians, as for corruption there r lots places that have it, u sh try thailand !!
I completely agree with most of this. The Chinese economy is much more dependant on being a low cost manufacturing/export engine and attracting FDI. India is focusing on high end intellectual work as well as domestic market development. I also agree with the quality of engineers, and china basically has no regard for adhering to standards or respecting IP laws. India has done much more enforcement in these areas.