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Sensex Has Lost About 41% Since Last Year
Mumbai: When Dalal Street resumes trading on Friday, after the Dussehra holiday, investors are likely to face another volatile session. Although central banks across the globe have taken major steps to calm market volatility and panic among investors, observers do not see any immediate recovery in the market. To add to investors' woes, in early trade on Thursday, Dow Jones was trading nearly 1% lower, its seventh consecutive session of losses.
Moving beyond Friday's trading, now it is nearly certain that market would face a black Diwali—which is less than three weeks down the line. Since last Diwali, investors have incurred record amount of losses.
Data analysed by TOI shows that since last Diwali, sensex has lost 41% in value while investors are poorer by over Rs 26 lakh crore. With chances of any immediate recovery a distant prospect, the year since last Diwali is all set to go down as the worst ever for the investing community.
Every year, investors on Dalal Street, dominated by Gujaratis, celebrate the beginning of a new year on the Diwali day. And a special trading session, called Muhurat Trading, is conducted on both the bourses to mark the beginning of the new year, called Samavat year.
Last Diwali day, which was on November 9, 2007, traders had celebrated the start of Samavat Year 2064. Historical sensex data shows over the last 12 years, Samavat 2054 (1997-98) was the worst year for Dalal Street investors.
That was the year when India, with a BJP-led coalition at the centre, had conducted a series of nuclear tests. Those tests, popularly called Pokharan II, was followed by global sanctions and subsequent massive pullout of funds by foreign institutional investors (FIIs). The resultant fall in the sensex that year was a little over 27%.
The losses during the current Samavat year, however, is worse than in 2054. During last Diwali, the markets were on a roll with new highs being scaled every other day and investors' wealth was increasing by thousands of crores rupees every day.
Consider this: During Samavat 2063 (2006-07), the sensex had rallied over 50% as the index went past 13K to 19K levels. Post-Diwali last year, in two months to January 10, 2008, the sensex rallied to reach 21K. But the bear market that followed through most months of Samavat 2064, has offset most of the gains of Samavat 2063, when investors' wealth had grown by a record Rs 29.8 lakh crore.
Although 12 trading sessions are still left in the current Samavat year, market players do not expect much change in the fortunes of the investors when they welcome Samavat 2065 on October 28.
Moving beyond Friday's trading, now it is nearly certain that market would face a black Diwali—which is less than three weeks down the line. Since last Diwali, investors have incurred record amount of losses.
Data analysed by TOI shows that since last Diwali, sensex has lost 41% in value while investors are poorer by over Rs 26 lakh crore. With chances of any immediate recovery a distant prospect, the year since last Diwali is all set to go down as the worst ever for the investing community.
Every year, investors on Dalal Street, dominated by Gujaratis, celebrate the beginning of a new year on the Diwali day. And a special trading session, called Muhurat Trading, is conducted on both the bourses to mark the beginning of the new year, called Samavat year.
Last Diwali day, which was on November 9, 2007, traders had celebrated the start of Samavat Year 2064. Historical sensex data shows over the last 12 years, Samavat 2054 (1997-98) was the worst year for Dalal Street investors.
That was the year when India, with a BJP-led coalition at the centre, had conducted a series of nuclear tests. Those tests, popularly called Pokharan II, was followed by global sanctions and subsequent massive pullout of funds by foreign institutional investors (FIIs). The resultant fall in the sensex that year was a little over 27%.
The losses during the current Samavat year, however, is worse than in 2054. During last Diwali, the markets were on a roll with new highs being scaled every other day and investors' wealth was increasing by thousands of crores rupees every day.
Consider this: During Samavat 2063 (2006-07), the sensex had rallied over 50% as the index went past 13K to 19K levels. Post-Diwali last year, in two months to January 10, 2008, the sensex rallied to reach 21K. But the bear market that followed through most months of Samavat 2064, has offset most of the gains of Samavat 2063, when investors' wealth had grown by a record Rs 29.8 lakh crore.
Although 12 trading sessions are still left in the current Samavat year, market players do not expect much change in the fortunes of the investors when they welcome Samavat 2065 on October 28.
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