Sensex, the Bombay Stock Exchange

One indication of how the economy is doing are the indices of Bombay Stock exchanges (BSE Sensex) and the National Stock exchange (NSE Nifty). The BSE Sensex, which is based on 30 stocks only, had a base of 100 on 1 April 1979. It  was at 5,000 points in early 2000, rose to 50,000 in Jan 2021. It had crossed the 25,000 mark for the first time in May 2014 when Narendra Modi came to power – and since has nearly doubled.

In early 2020, due to the Covid-19 pandemic and the nationwide lockdown, the Sensex had crashed. As cases rose, there was a massive global selloff. Small businesses and individuals at the bottom of the pyramid were worst hit by the pandemic. But the stimulus measures and steps taken by the government led to record foreign portfolio investors (FPI) inflows. A system flush with liquidity, low interest rates, and impressive corporate results in the second and third quarters resulted in the continuously rising Sensex. The BSE mid cap index has risen over 80%, and the small cap index by over 95%. Almost all major sectors have participated in the rally.

https://indianexpress.com/article/explained/sensex-at-50000-explained-for-investors-7156561/ 

FPIs are expected to bring more funds into Indian equities in the coming financial year as global interest rates remain low and India’s economic fundamentals make the country an attractive investment destination. However, the markets are trading high, and negative news may lead to a correction.

India's stock market is now the seventh biggest in the world, up three spots,  as total market capitalization increased to $2.7 trillion. It is now bigger than Canada, Germany and Saudi Arabia and may overtake France to become the sixth biggest in the world. Total market capitalisation of France now stands at $2.86 trillion. It is also the second-best performer among the top 15 countries in 2021.

https://www.timesnownews.com/amp/business-economy/markets/article/indias-stock-market-now-7th-biggest-in-the-world-as-bse-m-cap-surges-to-2-7-trillion/717342

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