Sensex Milestone: A Journey Through Historic Market Moments

Understand the market's resilience, from the impact of global crises to moments of political significance, highlighting the broader economic trends.

Gobind Arora
Published on: 12 Dec 2023 1:32 PM GMT
Sensex Milestone: A Journey Through Historic Market Moments


In a historic feat, the BSE Sensex recently breached the 70,000-point mark, marking a profitable week for Indian stock market investors. The journey of Sensex, launched in 1986, reveals a fascinating trajectory, reflecting India's financial health and resilience in the face of global and domestic challenges.

The boom of Sensex in 2023 is particularly noteworthy, showcasing a robust performance despite global fissures like the wars in Ukraine and West Asia. Over the eight months since March, Sensex has witnessed a substantial jump of around 12,400 points, reaching new heights even as global uncertainties prevailed. In late November, the Nifty 50 also touched 20K for the first time, underscoring the market's upward momentum.

The period between 2021 and 2022 witnessed a post-Covid spike, with Sensex opening at 50,096.57 points on January 21, 2021, and crossing the 60,000 mark within eight months. This surge was attributed to the successful rollout of Covid-19 vaccines, showcasing the market's sensitivity to significant global health events.

However, the year 2020 marked a challenging phase for the stock market during the Covid lockdown. The announcement of the lockdown led to a 13% tumble in a single day, reflecting the steepest intraday fall of Sensex at that time.

Political events also significantly impacted Sensex. In 2019, the return of Modi's government led to a substantial spike, touching the 40,000 mark for the first time in June. Similarly, in 2014, Narendra Modi's election as Prime Minister contributed to an 8% surge, emphasizing the market's response to political shifts.

Demonetisation in 2016 witnessed a bear-run, with Sensex falling 1.23% after the announcement, and a subsequent loss of 6.6% in value. The Congress win in 2009 marked the best-ever day for Sensex, rallying 17.34% on May 18, showcasing the market's positive response to political stability.

However, global events also left a lasting impact. The Great Recession in 2008 triggered a massive fall of over 37%, highlighting the interconnectedness of Indian markets with the global financial landscape. The Harshad Mehta scam in 1992 resulted in a significant dip of 46.7%, marking the worst fiscal year in the history of Indian markets.

Through these pivotal moments, Sensex's journey serves as a barometer of economic health, political stability, and global resilience. The recent crossing of the 70,000-point milestone underscores the market's ability to weather diverse challenges and emerge stronger, reflecting the dynamic nature of India's financial landscape.

Gobind Arora

Gobind Arora

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