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Diwali is yet a month away and Indian investors have been celebrating every day since 18-09-2007. On 26-07-2007 the sensex touched life time high of 15868 and started sliding due the global concerns of the sub-prime issue of US. The negative sentiment brought the sensex to the low of 13779 on 17-08-2007. Thereafter the market showed some healthy moves but required some thing to merry about.

Announcement on 18-09-2007 of the Fed Reserve was eagerly awaited as reduction in the landing rate was anticipated. The news came as expected and the Indian stock market showed buoyancy and on 19-09-2007 opened up with positive gap , above the previous life time high and closed at 16322 with net gain of 653 marks from the previous close of 15669.

What has happened thereafter is the record in the history of Indian stock market. For next 12 days, everyday the market made new high and analysts and experts cautioned about a correction but the market did not show any sign of correction. However, the weak trading session on 5-10-2007 and next day’s volatility of 579 points and negative close of 17491, appeared to be the sign of the end of the party. But the biggest surprise was yet to be unveiled on the next day.

Today (09-10-2007) morning the markets started sluggish without any sign of improvement and within few minutes the sensex reached to 17287. But thereafter it has showed such movement which nobody had anticipated. Most analysts and experts were talking about short positions and correction but the announcement from the political front vanished all the nervousness of the market and the market moved without any sign of doubt and crossed 18000 mark and closed at 18280 , making historical nearly 1000 points upward movement and net gain of 788 points.

Sensex: Road to 18 K
9-10K: 49 days
10-11K:30 days
11-12K: 20 days
12-13K: 136 days
13-14K: 27 days
14-15K: 144 days
15-16k: 53 days
16k-17k: 6 days
17k-18k: 8 days
Sensex Chronology
18,000- October 9, 2007
17,000 – Sep 26, 2007
16, 000 – Sep 19, 2007
15,000 – July 6, 2007
14,000 – Dec 5, 2006
13,000 – Oct 30, 2006
12,000 – Apr 20, 2006
11,000 – Mar 21, 2006
10,000 – Feb 6, 2006
9,000 – Nov 28, 2005
8,000 – Sep 8, 2005
7,000 – June 20t, 2005
6,000 – Feb 11, 2000
5,000 – Oct 8, 1999

The sensex has gained 2340 points or 14.5% since 19-09-2007 and has performed better than most of global markets. Dow Jones Industrial Index touched lifetime highs of 14000 marks on 19-07-2007 and fall low mark of 12845 and in spite of all the good news coming form US itself, it has not been able to gain as fast as its Indian counterparts.

The stock market is largely based on sentiments and is full of sentimental people. On 20-09-2007 when the sensex was near 16300 somebody predicted about reaching 20,000 marks by early ’08, which seemed unlikely, now it doesn’t. Now someone is predicting that sensex will reach to 40,000 marks, what do you say?


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