In the last 40 years, the Sensex has journeyed from 100 points to close at a level of 39,000 on 1 April 2019. There were periods of exceptionally fast growth and some periods of consolidation and slower rise. It took the Sensex 11 years to cross the 1,000 mark in 1990, but it crossed the next 3,000 points in less than a year. The Harshad Mehta scam hung over the market in this period but it also led to significant market reforms in trading and settlement. The economy too witnessed the first wave of reforms with liberalization of the investment and trade regimes fostering greater competition and efficiency.
Source : livemint.com
The journey from 4,000 to 5,000 levels for the Sensex took seven years and was reached in 1999. The period also saw knowledge-based sectors such as information technology taking centre stage and stocks like Infosys Ltd and TCS Ltd increasingly replacing the old economy stocks as the most tracked and watched components of the Sensex.
In 2006, the Sensex crossed the 10,000 mark as a Chinese-led commodity boom saw a rally in global markets. The Sensex hit the 20,000 mark in December 2007 propelled by global liquidity. The sub-prime crisis hit world markets in early 2008 and by October that year, the Sensex had lost 64% of its value to sink to 8,500 points.
Over the next five years, the market consolidated and grew steadily on the back of a recovering Indian economy and a second round of reforms in 2012. From 2014 onwards, the market has been tracking Indian economic reforms and has been aided by abundant global liquidity as central banks around the world maintained an accommodative stance. Over this period, the Sensex steadily moved to 30,000 and then the new high of 39,000.
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