10,000 days of Sensex trading: Some interesting facts

Shashikant Singh
/ Categories: Trending, Mindshare
10,000 days of Sensex trading: Some interesting facts

Every Rs one lakh invested on April 1, 1979, would have become Rs 4.22 crore now. This translates into an annualised return of 15.02 per cent.

On June 21, 2022 benchmark equity index of one of the oldest equity exchanges in the world, the Bombay Stock Exchange completed 10,000 trading days. BSE Sensex, the base value of which is taken from April 1, 1979, as 100 and was first published on January 1, 1986, has generated a return of 42213.39 per cent since inception (April 1, 1979). This means every Rs one lakh invested on April 1, 1979, would have become Rs 4.22 crore now. This translates into an annualised return of 15.02 per cent.

In this journey of little more than 43 years, Sensex has witnessed many business cycles and has become a sort of proxy for the Indian economy and the pulse of domestic equity market.

Following graph shows the journey of Sensex since its inception. This line graph is taken on a log scale to show the movement or returns and different drawdown in the right context. So, the fall of March 2020 was less than the fall that we witnessed during 2000-01 (dotcom bust) though in points it has fallen more.

 

 

Following are some of the interesting facts about Sensex in terms of their daily, monthly and yearly returns. So, Sensex gained as much as 17.34 per cent in May 2009 after the formation of UPA II government. Similarly, the worst fall that we saw was recently during Covid-19, when Sensex fell by 13.15 per cent in a single day. 

 

Stats

Daily

Monthly

Yearly

Sharpe

0.74

0.66

0.62

Mean

18.36%

17.43%

19.34%

Volatility

24.97%

26.44%

31.30%

Skew

0.12

0.55

0.39

Kurt

7.29

2.7

0.19

Best

17.34%

42.00%

93.98%

Worst

-13.15%

-23.89%

-52.45%

 

The current fall in the Sensex and fall before it during Covid-19 crisis does not form part of the top five falls or drawdown witnessed by the Sensex. This table shows the top five drawdowns of Sensex.

Net drawdown in %

Peak date

Valley date

Recovery date

Duration

60.91

08-01-2008

09-03-2009

04-11-2010

738

56.18

11-02-2000

21-09-2001

02-01-2004

1016

54.41

22-04-1992

26-04-1993

12-08-1994

603

40.81

04-06-1986

28-03-1988

30-09-1988

608

40.72

12-09-1994

04-12-1996

14-07-1999

1263

 

 

 

Following Graph Shows The Monthly Return of Sensex

 

The following is a timeline on the rise of SENSEX through Indian stock market history.

Date

Important Milestone

25-Jul-90

1000

15-Jan-92

2000

29-Feb-92

3000

30-Mar-92

4000

11-Oct-99

5000

11-Feb-00

6000

21-Jun-05

7000

08-Sep-05

8000

09-Dec-05

9000

07-Feb-06

10000

11-Dec-07

20000

04-Mar-15

30000

23-May-19

40000

21-Jan-21

50000

24-Sep-21

60000

23-Jun-22

52348

 

BSE established in year 1875, is oldest stock exchange in Asia and has the highest number of shares listed in any exchange.

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