STRATEGIES POST NEW INDEX HIGHS

THE BSE Sensex crossed the 70,000 points mark recently. Such milestones are 'celebrated' by the financial media, especially our 'over the top' electronic media, and it invariably sparks a debate on whether a huge correction or even a crash is round the corner.

- ASHOK KUMAR

If I look back at the journey of the BSE Sensex since the late 1980s, 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.

The BSE Sensex then soared once again to 5887 points at the turn of the century in January 2000 before literally halving to 2924 points in January 2003.

From a point where all seemed lost, we witnessed a huge secular bull run over the next five years that took the index to 20,873 points in January 2008.