Fast and furious: Sensex took 54 days to kiss 9000

The 30-scrip Sensex took 54 trading days to kiss 9000 points after touching 8,000 on September 8. However, after the October slump - which saw the index drop from 8799.96 on October 4 to 7685.64 on October 28 "" it took only 17 trading days between November 1 and 28 for the Sensex to jump from 8000 to 9000.

The key drivers of the rally were undisputedly foreign institutional investors (FIIs) and domestic mutual funds (MFs). Foreign funds bought shares worth $780 million (Rs 3,775 crore) in November, taking their net investment to more than $8.5 billion thus far in 2005, after pulling out more than $866 million in October. Mutual funds invested Rs 446 crore thus far in November after buying Rs 2,900 crore of shares in the previous month.

Historically, the fastest 1000-point gain in Sensex was triggered by Harshad Mehta in 1992, aided by the entry of foreign institutional investors in the country. The Sensex romped its way from 2000 to 4000 in 1992.

In 29 trading days, between January 15 and February 29, 1992, the Big Bull inspired markets with the Sensex crossing 3000 in 29 trading days and 4000 over the next 15 trading days (on March 30, 1992).

Before the bull charge by Mehta in 1992, the Sensex took 287 trading days to cross 2000 from 1007.97 on July 20, 1990. The fastest stock markets rally in fact was tainted by a scam.

The scam broke in April 1992, which vaporised all short term gains. The lull prevailed thereafter on account of recession in the corporate sector and political uncertainty.

The Sensex journey from 4000 to 5000, took 1,791 trading days. The ICE rally of 1999-2000 took the global markets to a new highs and the Sensex crossed 5000 a day before the start of the new millennium.

The ICE run peaked at 5924.31 on February 14, 2000 and immediately after that, Sensex lost 1068 points in 35 trading days. The new National Democratic Alliance (NDA) government again fuelled the Sensex rally to 5000 in 1,033 trading days between December 30, 1999 and February 13, 2004.

The euphoria was, however, short-lived as exit polls hinted at a collapse of the NDA government. The NDA government finally exited on May 13, 2004.

The new UPA government took over in May 2004. Thereafter, the Sensex took 343 trading days to touch 7000 on June 21, 2005 from 6011.66 as on February 13, 2004. The Sensex took 54 trading days to travel from 7000 to 8000 and another 54 days to travel 8000 to 9000.