SENSEX has increased investor wealth 560 times since its inception. India’s first equity index closed for the first time on 25 July 1990 with more than 1,000 of the four figures. Various economic and political events led to the establishment of this benchmark. The Sensex was 5,000 in 1999 and closed above 10,000 in February 2006 and surprisingly reached 50000 in January this year and has now reached 56000 levels.
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In today’s opening trade, the BSE Sensex crossed the 56,000 level, reaching a new high. Due to an uptrend over the past several days, the Sensex has been setting records for the past several sessions. Since the original year began in 1978-79, SENSEX has been an excellent return for long-term investors.
VK Vijayakumar, chief investment strategist at Geojit Financial Services said, “The Sensex has risen 560 times since its inception in 1979 (base year: 1978-79 = 100). The rally is unstable with a sharp uptick that has plagued short-term investors and traders. The future is no different. “
These are the reasons behind the boom
According to analysts, the rally in the stock market is due to the over-buying of retail investors. The metal index performed well this year, followed by the Nifty IT Index. Vijayakumar said, “But it is important to keep in mind that good earning potential, such as IT and metals, is given more importance. Therefore, investors should be careful when investing in this bull market.” For the first time in the fiscal year that ended in March, investors were increasingly facing the stock market. The number of retail investor accounts rose by 35% to reach Rs 5.5 crore.
Equity Master Vijay Bhambawani said the retail buyout index was pushing the blue sky zone (new highs). “Since nobody loses money at the current level, there is little chance that profit will emerge. This will boost purchase confidence.”