The best year for the Sensex since FY92

The Bombay Stock Exchange's Sensex clocked its biggest gain in twelve years since the economy was opened up in 1991-92 during the last fiscal. The benchmark 30-stock index shot up by 83.37 per cent in 2003-04.

The second highest increase was in 1999-2000 when the index recorded a 33.72 per cent growth. This was followed by a 32.03 per cent rise in the fiscal 1993-94.

A study of the Sensex data revealed that the rise in 2003-04 has put the change of the index during a financial year "" between the closing level of previous financial year's last trading session and current fiscal's first session "" in reverse mode after suffering loss in 2001-02 and 2002-03.

In addition to 2003-04, 1993-94 and 1999-2000, the Sensex rose in 1997-98 (15.82 per cent), 1996-97 (0.16 per cent) and 1995-96 (3.23 per cent). It declined in 1992-93 (33.20 per cent), 1994-95 (13.70 per cent), 1998-99 (3.92 per cent), 2000-01 (27.93 per cent), 2001-02 (3.74 per cent) and 2002-03 (1.21 per cent).

Overall, the Sensex rose in six years and declined in six years between the financial years 1991-92 and 2003-03. However, the index grew by 30.46 per cent between March 31, 1992, and March 31, 2004.

Experts said the growth in Sensex in the last financial year was mainly due to the record inflow of funds from the foreign institutional investors and the sound performance of the economy, led by the manufacturing sector.

"The market was sure about an 8 per cent GDP growth. The bullish sentiment is now being fueled by the anticipation of a 10 per cent growth. If that happens, the Sensex will cross the 7,000 mark," an expert said.

Market men said corporates' financial results, which would come out by the end of this month, would reiterate India Inc's a strong fundamental position.

This, they said, would push the markets up once a clear picture of the next government emerges. They were sure that the colour or combination (in case of a coalition) of the government would not be an issue to the growth of the market. They also agreed that the markets would be comfortable if the BJP-led NDA comes to power.