Sensex tops 75,000 levels, delivers highest CAGR return of 25% since April 2020
Indian equities supported by domestic macros and benign global cues have been logging new highs suggesting a bull phase. The headline BSE Sensex hit levels of 75,000 in Tuesday’s session on the auspicious occasion of Gudi Padwa and Nifty also marked a new high of 22,768.4 mark.
Here we take you to the Sensex journey to 75,000 levels propelled by fundamental strong sectors of the economy including capital goods, auto, banking and metals.
Sensex journey closing levels
| Sensex journey closing levels |
|
Level Total Days |
|
100-1000 1665 (88%) |
|
1000-10k 5675 (+875%) |
|
10k-20k 671 (+101%) |
|
20k-30k 3423 (+48.5%) |
|
30k-40k 767 (+34%) |
|
40k-50k 611 (+25%) |
|
50k-60k 247 (+19.5%) |
|
60k-70k 811 (Sensex gave returns of 17.5% in 811 days) |
|
70K-75K 117 (14 dec 2023 – till today) Sensex gave returns of 6% in 117 days |
So, precisely while it took a substantial time for the benchmark index to notch its first 1000 level of 1665 days, it took hardly four months to notch the new high of 75,000 levels on the index, giving a significant return of 116 per cent.
After hitting 70,000 levels on December 14, 2023, Sensex hit the milestone of 75,000 levels for the first time today on the auspicious occasion of Gudi Padwa.
Also, a significant point to take note here is that in a matter of just four years since April 2020, Sensex has yielded the highest CAGR growth of 25 per cent. Prior to this, during the period from 1990-2000, Sensex delivered a CAGR return of 20.4 per cent.
Arvinder Singh Nanda, Senior Vice President, of Master Capital Services on Sensex gains to 75,000 levels said, “In the fourth quarter, the anticipated corporate earnings have been a driving force behind the recent market momentum. Despite notable increases in the prices of gold, crude oil, and metals, investors are witnessing an upward trend in equity markets, and there are expectations of a Federal Reserve rate cut. Investors may consider locking in partial profits while keeping a hold approach.”
Government policies and reforms have played a crucial role in fostering a stable environment conducive to market growth. Measures aimed at stimulating the economy, coupled with a focus on digitalization and infrastructure development, have attracted substantial investments. The growing involvement of retail investors, combined with sustained interest from foreign institutional investors, highlights the widespread confidence in India’s growth story, the expert added.
