Archive for February 9th, 2006

Sensex crosses 10,000 mark

February 9, 2006

Sensex, the Indian Stock Exchange Index based on Bombay Stock Exchange (that has a history going back to 1875) creates history on February 7, 2006

Sensex (the term is in use since 1990) has a base of 100 points in 1979 and its base is –readjusted periodically by index correction. It is based on 30 stocks of leading edge firms with good liquidity (frequent trading) and representative of large firms, promising firms, firms from old economy and new economy. Interestingly the current “basket” of 30 firms include all the top four IT services firms namely, TCS, Infosys, Wipro and Satyam

To provide a historical perspective, Sensex crossed the 1,000 mark on July 25, 1990; the 2,000 mark on January 15, 1992; the 3,000 mark on March 2, 1992; the 4,000 mark on March 30, 1992; the 5,000 mark on December 30, 1999; the 6,000 mark on January 2, 2004; the 7,000 mark on June 20, 2005; the 8,000 mark on September 8, 2005; the 9,000 mark on November 28, 2005; and finally the historic 10,000 mark on February 7, 2006.

It is interesting to note that the Sensex joins the elite league of stock indices that have gone past the 10,000 mark; these include Dow Jones, the stock market index of the stock exchanges in USA (in the year 1999), Hang Seng, the stock market index in Hong Kong (in the year 1999) and Nikkei, the stock market index of Tokyo Stock Exchange in Japan (in the year 2003).

Sensex is re-computed every 30-seconds using online information collection, impossible without the IT!