Indices And Art Of Staying Invested

Numbers and milestones clearly matter to participants at the stock market.

- ASHOK KUMAR

This becomes self-evident whenever the BSE Sensex touches a new milestone number.

Some months ago, it was 70,000 points and now, it is 80,000 points. Such milestones, which are ‘celebrated’ by the financial media, especially our ‘over the top’ electronic media, also invariably sparks a debate on whether a huge correction or even a crash is round the corner.

If I look back at the journey of the BSE Sensex since the late 1980’s, it stood at 510 points in January 1987 and then soared to a new high of 4285 points by January 1992 before dropping to 1991 points within a year in January 1993.