Sensex was launched in January, 1986, quickly after which India confronted a large stability of cost disaster that just about pushed the nation on the sting of chapter. The then Finance Minister Manmohan Singh warned that the international trade reserves had fallen to such low ranges that it might suffice to finance imports for less than a fortnight. The federal government scrambled for emergency loans to guard the economic system. Sensex again then was buying and selling beneath 1,000.
Massive Bang reforms of 1991 and impression on Sensex
In July 1991, Manmohan Singh introduced the historic funds that ended the license raj, opened doorways for globalisation, privatisation and liberalisation. On the 1991 funds day itself, Sensex jumped practically 5%. The benchmark index delivered a large 82% return in 1991, closing at 1,909.
Sensex then went on a bull run after the historic funds of 1991. Within the seven months earlier than Dr Singh introduced his second funds in February 1992, Sensex rallied a large 94%. Along with the impression of the historic funds, the markets had been within the grip of a bull run pushed by Harshad Mehta.
Harshad Mehta rip-off unfolds
In March 1992, Sensex crossed 4,000 for the primary time, earlier than bears took over. On April 28, 1992, Sensex fell by a large 13% because the Harshad Mehta rip-off got here to mild. However as time handed, increasingly more reforms came visiting, India’s economic system boomed and so did its inventory markets.
Sensex final yr in December crossed the 86,000 mark. This suggests a large 8,500% return or 14% CAGR for the reason that reforms had been introduced in 1991. General since its inception, Sensex has delivered constructive returns in 30 out of 40 years. 2024 marked an enormous yr for the index, because it crossed three milestones- 75,000, 80,000 in addition to 85,000. From 2014 to 2025, Sensex has moved up from 25,000 ranges to 86,000 ranges.
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Sensex at this time
After hitting a lifetime excessive above 86,000 final yr, Sensex has declined round 10% since then to commerce beneath 78,000 at present as international AI frenzy, rising oil costs amid a raging battle within the Center East and different elements spooked traders. Nonetheless, analysts proceed to stay bullish on the inventory market’s long run outlook, with company earnings impressing traders.
Earlier this yr, Motilal Oswal Financial Services‘ Chairman Raamdeo Agrawal stated that India is a ‘Ferrari’ amongst international markets, and stays one of many world’s finest searching grounds for multi-bagger shares. Talking at Groww India Investor Pageant 2026 in Could, the market veteran stated that a long time of compounding, rising financialisation and structural progress tendencies have constructed the sturdy basis of the Indian market. “I’ve seen Sensex go from 100 to 80,000 in 40 years. For me to imagine the journey can be any completely different over the following 40 years, there is no such thing as a argument for that,” Agrawal stated.
The market knowledgeable highlighted that India’s market capitalisation has compounded at practically 14% yearly in greenback phrases over the past twenty years, in contrast with round 7% for the US market. “Each 5 to 6 years, you double. That’s the tempo,” he added.
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(With inputs from businesses)
(Disclaimer: Suggestions, ideas, views and opinions given by the consultants are their very own. These don’t signify the views of The Financial Instances)
