Thursday, October 18, 2007


The base value of sensex was 100 on April 1st, 1979. In July 1990, it reached 1000. And in early June 2005, it was less than 7,000. By Oct 2007, it reached 19,000. Such a big spike in 2 years 4 months. But, still I am hearing comments from many people saying that, economy of india is very good. That's why we are seeing this growth. It will grow, or it may stabilize. But, it won't fall that much. I am not an expert in stock market, so cannot comment on it. Just for food for thought, these are the two charts for US, and Japan stock markets.

This chart is for US Stock Market (NASDAQ), and stock market has not reached 2000 level till now.

This chart is for Japan stock Market, and the stock level has not reached the peak level in 1985-90, even after 20 years.

Most of the time, and from most of the people, I am hearing that this will not happen to india. I don't know what will happen. Time will tell whether it is true or not.

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