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Sensex crossed the 10,000-mark in the recent bull
run cheering thousands of investors up. It galloped
from 7,000 to 10,000—a coveted number—in less
than three months. The rise in the number of High Net-
Worth Individuals (HNWIs) and expectations of increased
foreign portfolio investment have driven traders’ interest
in the market. It is a broad-based movement and the
major gainers are front line stocks. On that eventful day
as many as 29 shares that comprise 30-share indices
ended higher except Wipro Limited which experienced a
marginal decline of 0.2%. In this 10-K march, not only
Nifty and Sensex stocks, but also mid-caps and small-caps
gained by 2.2% and 2.7% respectively during that peak. A
buoyant economy provided a firm underpinning to the
mid-cap companies. The Foreign Institutional Investors
(FIIs) have broadened their investment in more than 750
stocks and in several mid-cap companies, and they are
holding over 20%. Institutional investors and the FIIs
have provided a perfect support to the rising equity
values.
So far, eight other stock market indices in the world
have crossed this milestone. Interestingly, the Karachi
Stock Exchange 100 of Pakistan touched this point in
March 2005. Then of course there are the Dow Jones
Industrial Average of the US (10,798), The Hang Seng of
Hong Kong (15,500) and Nikkei 225 in Japan (16,717) that
have crossed the 10,000-mark well before our Sensex did.
Brazil’s Bovespa (37,321), MTBTEL of Milan (28,025), IPC
of Mexico (18,862), and S&P TSX Composite of Toronto
(12,080) are the other global indices quoting well above
the 10,000-mark. Table 1 shows the time frame of various
indices touching the 10,000 points. |
