You are here: Rediff Home » India » Year-end 2007
The Year That Was: 2007
Rediff looks back at the highs and lows, the successes and failures, the heroes and villains, the wild and the overblown that made this year.

Euphoria and Failure

Sensex on steroids

December 10, 2007

Why the Sensex soared and what should you do now
2007 saw the Indian stockmarkets experiencing the biggest revolution in history, showing signs of a major shift in the world's economic set-up as funds took flight from developed economies and entered emerging markets like India.

The Sensex -- the Bombay Stock Exchange's 30-share sensitive index -- was on steroids during the year, skyrocketing at a dizzying pace from 13,000-odd at the beginning of the year to cross 20,000-mark on October 29.

The surge was in tune with other Asian markets, as foreign investors poured in money in these markets as if there were no tomorrow.

While the Sensex took over 20 years to cross the first 10,000 points, the next 10,000 were crossed in only 20 months.

It touched 1,000 points for the first time on July 25, 1990 and crossed 10,000 points on February 6, 2006. Since then, it has been going just one way: up, up and away.

On July 6, 2007, it went past 15,000; on September 19, it topped 16,000; on September 26, it sped past 17,000; and then in October alone it scaled three major peaks.

It crossed the 18,000-mark on October 9, 2007: taking only 8 days to cross from 17,000 to 18,000 points. If that wasn't fast enough, the index zoomed from 18,000 to 19,000 in just four trading days! Thereafter, it took just 10 more trading days to cross 20,000 on October 29.

India became the 20th nation in the world to have seen its stock market index enter the league of bourses that have touched the 20,000-point milestone.

In Asia, the Sensex is second only to Hong Kong's Hang Seng. The other countries whose stockmarket indices have crossed the 20K level include Mexico, Brazil, Argentina, Venezuela, Peru, Costa Rica, Jamaica, Italy, Poland, Russia, Hungary, Ukraine, Turkey, South Africa, Egypt, Morocco, Nigeria and Hong Kong.

Reportage: rediff business desk | Photograph: Sajjad Hussain/AFP/Getty Images. Image: An Indian stock trader celebrates during trading at a brokerage house in Mumbai.
Also read: Fun with the Sensex from 17K to 18K
  Email this Page  |   Write to us


© 2007 India Limited. All Rights Reserved.Disclaimer | Feedback