Sensex Hits 75,000, Was At 25,000 When PM Modi Won In 2014; A Look At The Journey

The Sensex crossed the 75,000 milestone on April 09, 2024, a few days ahead of the start of the general elections to the Lok Sabha. It would be worth recollecting that the Sensex had crossed the 25,000 milestone 10 years back on May 16, 2014, the exact day the 2014 general elections results were announced.

75,000 – Mark Journey

BSE Sensex, the benchmark index of the Indian stock market, briefly crossed 75,000 points for the first time in history on Tuesday. It opened at 75,060 points, 0.4% above the previous day’s close and then ended the day’s trading at 74,683.70, down 0.08% from the day’s opening.

On NSE, Nifty, too, scaled a new life-time peak at 22,768 points during early trades but closed at 22,643, down 24 points.

The slide was partially owing to investors’ nervousness about expected US inflation data due Wednesday, more so after recent high-employment data released last week, said Vinod Nair, head of research, Geojit Financial Services. An uptick in US inflation reading could delay rate cuts by its central bank and put global investors on the backfoot.

Broader markets also supported the rally as the Nifty Midcap 100 and the Nifty Smallcap 100 indices gained over 0.3% each. Strong buying was seen across the sectors with Nifty Realty, Nifty Auto, Nifty IT and Nifty PSU Bank rising the most.

With this, the market cap of BSE has also crossed Rs 400 lakh crore.

In the last 10 years, since Modi-led NDA govt came to office, investors’ wealth, measured by BSE’s market cap, has gone up by five times.

Interestingly, the Sensex has surged about 25 per cent in the last one year and is up by more than 26 per cent from its 52-week low of 59,412.81 which it hit on April 21, 2023.

Also, it took the Sensex 24 sessions to hit the 75,000 mark after hitting the 74,000-mark on March 6, this year.

In December, ICICIdirect in its strategy note suggested a Sensex target of 83,250 for December 2024.

Sensex breached 25,000-mark when Modi became PM in 2014

The 30-share Sensex took little less than a decade to surpass 75,000-mark from 25,000-mark which it breached in May 2014 after the general election results were declared in which the Bharatiya Janata Party (BJP) came to power with a resounding victory and Narendra Modi was elected as the Prime Minister of the world’s largest democracy.

Back on May 16, 2014, market sentiments rose as investors were expecting a stable government under the leadership of PM Modi, who was seen as an industry-friendly leader in the lead-up to the election.

Sensex crossed 50,000-mark in 2021

Sensex took almost four years to jump to the 35,000-mark. In 2019, with Narendra Modi and BJP retaining power at the Centre the index zoomed past 40,000 landmark on May 23.

Sensex jumped from 45,000-mark to 50,000 in mere 35 sessions.

The Sensex was also affected by the COVID-19 pandemic and massive stimulus measures during 2020. However, the market revived and made a massive comeback, jumping nearly 91 per cent in mere 10 months to breach the 50,000-mark, creating another milestone. On January 21, 2021, the Sensex ended at 50,127 points.

In the same year itself, the Sensex rose another 10,000 points to hit its 60,000 mark in September 2021.

It is worth mentioning that post- COVID, the Indian stock market has seen more gains than losses.

Sensex, created in 1986, is the oldest stock index in India and comprises 30 of the largest and most actively traded stocks on the Bombay Stock Exchange (BSE).

The term Sensex was coined by stock market analyst Deepak Mohoni. It is a portmanteau of the words ‘sensitive’ and ‘index’.

It was launched at a base price of 100 (base year 1978-79).