Sensex took less than 6 months to jump from 65k to 70k: A look at its journey from 1,000 in 1990 to 70,000 now
Bank of India (RBI) kept the repo rate unchanged at 6.5 percent as expected and raised the FY24 GDP forecast to 7 percent from 6.5 percent earlier. However, it retained the FY24 CPI inflation forecast at 5.4 percent. The Monetary Policy Committee (MPC) of the central bank also retained its stance of remaining focused on “withdrawal of accommodation." Apart from Friday's policy decision, continued foreign investor inflows, strong macro data, state election results and fall in crude oil prices as well as supporting global market trends have also lifted the index to its peak.
"Global and domestic cues favour continuation of the ongoing rally in the market despite high valuations. FIIs turning buyers, strong DII inflows, exuberant retail investors and a thriving IPO market supported by strong economic fundamentals can sustain the rally in the short run ignoring the high valuations. The overarching message from the RBI on Wednesday was that 7 percent GDP growth for FY 24 is a conservative estimate.
This is an indication of the growth momentum in the economy," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. The index has already surged over 4 percent in December, giving negative returns in just 1 session of the current month so far. This comes after a 5 percent rise in November.
Overall, in 2023 YTD, the index has gained almost 15 percent; meanwhile, in the last 1 year, it has advanced over 12 percent. From its birth in January 1986 with trading levels of about 550 points, to reaching its all-time high of over 70,000 points today in 2023, the Sensex has managed to maintain its boom, despite having multiple periods of sharp decline like the 2008 financial crisis and the 2020 pandemic. The first
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