The BSE Sensex, a benchmark index of the Indian stock market, reached a monumental milestone as it surged past the 70,000-point mark for the first time in its history. This historic achievement brought a prosperous week for investors, culminating in a slight dip to 69,988 points on Monday from its peak of 70,057 points on December 11.
Launched on January 2, 1986, the Sensex represents 30 stocks considered representative of the Indian market, serving as a crucial barometer of the nation's financial health.
While not directly indicative of the overall economy, the Sensex remains a significant gauge of industry progress and investor sentiment. Notably, its all-time high coincided with the announcement of assembly election results in five states, underscoring its sensitivity to political and economic events.
Reflecting on key historical moments, the Sensex witnessed remarkable fluctuations during pivotal junctures in India's economic and political landscape.
The Robust Surge of 2023:
Despite global tensions like the conflicts in Ukraine and West Asia, 2023 proved robust for Indian markets. The Sensex soared approximately 12,400 points in eight months since March, rising from 57,527 points to new heights. The broader Nifty 50 also reached a significant milestone, touching 20,000 points in late November.
Post-Covid Spike (2021-2022):
Following the Covid-induced lockdown, the Sensex showcased resilience. It swiftly crossed the 50,000-point mark on January 21, 2021, and surged to 60,000 points by September 23, 2021. The rapid ascent was attributed to the optimism surrounding Covid-19 vaccine rollouts.
Covid Lockdown (2020):
Amidst the pandemic-induced lockdown, the Sensex faced a severe downturn, plummeting by 13% in response to the nationwide lockdown announcement, marking one of its steepest intraday falls.
Key Political Events' Impact:
Several major political milestones left a significant imprint on the Sensex. Events such as the return of the Modi government in 2019, demonetization in 2016, Narendra Modi becoming Prime Minister in 2014, and the UPA's win in 2009 triggered substantial market movements, showcasing the index's sensitivity to political shifts.
Market Turmoil:
The Sensex encountered turbulent times, notably during the Great Recession of 2008, the Harshad Mehta scam in 1992, and its prolonged struggle to breach the 10,000-point mark in 2006, highlighting significant market downturns and challenging milestones in its history.
These historical markers elucidate the Sensex's responsiveness to economic, political, and global events, exemplifying its role as a reflection of India's financial journey, marked by moments of triumph and adversity in the ever-evolving landscape of the stock market.
