Sensex climbs to 37,000 from 7,000 in 13 years; Blue-chip share gains 3400%

The domestic equity markets have been fluctuating rapidly day in and day out following the corporate earnings that have been optimised and capital infusion from DIIs and FIIs, stability in crude oil prices, decline trade war worries, relatively lower volatility, strengthening of PSU banks, etc.

The wider share indicator NSE Nifty 50 reached a lofty high, while the yardstick Sensex index reached the extent of 37,000 for the first time on July 26. BSE Sensex on Thursday exceeded 37,000-mark hitting a towering 37,061.62 whereas NSE Nifty marked an all-time high of 11,185.85.

It took about 13 long years for the S&P BSE Sensex to reach 37,000 from a level of 7,000. BSE Sensex hit the 7,000-mark on 20 June 2005 on agreement news of Ambani brothers.

Other factors that reduced the growth in Indian stock market are after effects of the global financial crisis and the most recent repercussions include implementation of LTCG (Long-Term Capital Gain) tax on equity and equity oriented mutual funds with one after the other banking frauds with India’s second-largest PSU bank PNB witnessing a loss of Rs 14,000 crore (approx) involving the defrayal of fake LoUs by Nirav Modi and Mehul Choksi group of companies.

Surprisingly, despite a long list of negative on-goings, a blue-chip share has returned as much as 3400% in the last 13 years while BSE Sensex has amassed 30,000 points in the same time.

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In June 2017, the stock of Kotak Mahindra Bank were accounted for and included in BSE Sensex. Stocks of Kotak Mahindra Bank have returned 3393% to Rs 1,309.60 from a share price level of Rs 37.49 on BSE.  Kotak Mahindra Bank is standing among India’s top 10 companies by market share or stock market value.

On the basis of today’s closing share price of Rs 1,309.6, Rs 2, 49 lakh crore shares lie with Kotak Mahindra Bank. About 30% shares of Kotak Mahindra Bank have been reinstated in CY2018 and have been among the top players of the components of BSE Sensex so far in this year.

Meantime BSE slid to 126.41 with an all-time start of 37.061.62 points at record closing high of 36,984.64 on Thursday, 26 July 2018.

On the top contributor index were SBI, HDFC, HDFC Bank, ICICI Bank and Axis Bank while Maruti Suzuki, Yes Bank, L&T, Infosys, and TCS were the top laggards.