July 07: It is good news for the stock market players as the bulls run speedily breaking all previous records of Indian stock market history in this week. Sensex, the BSE index crossed the 15,000-mark intra-day while Nifty, the NSE index touched a new high of 4,400-mark in the Indian National Stock Exchange history. The total market capitalization reached up to $1.08 trillion dollar in Bombay Stock Exchange while $1.025 trillion in National Stock Exchange till last Friday.
It is the first time in Indian Stock market, when the index of both the Bombay Stock Exchange and the National Stock Exchange touched the remarkable mark 15,000 and 4,400 respectively. Sensex, the pack of top 30 companies and sensitive index of BSE climbed 5,000 points while S&P CNX Nifty, the pack of top 50 companies and index of Nifty rose 2,000 points in just 17 months. This is because of the increasing trust of domestic and foreign investors in Indian Stock Market due to continuous strengthening economy of the country and its record economic growth.
The country’s markets scaled yet another peak today, with the Sensex crossing the 15,000 mark intra-day, climbing 5,000 points in just 17 months as domestic and foreign investors increased purchases, attracted by India’s record economic growth.
The Sensex touched 15,007.22-mark before closing at 14,964.12 on Friday July 06,2007 while Nifty touched 4,411.00-mark before closing at 4,384.85. Even though this time the journey of 5,000 and 2,000-mark takes the longest time because of profit booking at every rise on the assumption that the market may be overvalued.
The P/E, price to earnings ratio, a key indicator that judge the strength of the market, is now 21.29 for the 30 Sensex stocks while it was 18.64 on February 06, 2006 when the market crossed 10,000-mark barrier first time. It indicates that now Indian market is little bit expensive, according to some market pandits.
FII, Foreign Institutional Investors invested more than $55 billion dollars within just two-and-a-half-years. In the last 1,000-mark journey Indian market also trailed other global market within same duration.
Some big and mega shares are also behind this achievement includes, Reliance Industries, DLF, Infosys, Cairs Energy, Larson & Toubro, Punj Lloyd, State Bank of India, ICICI bank, HDFC Bank and TCS.
The concerns have been split now on the condition of Stock Market, some experts says that now Indian market has been over valuated while some hope that it will make more remarkable history.
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