Trader's Diary

Following is the timeline on the rise and rise of the Sensex through Indian stock market history.

1000, July 25, 1990

On July 25, 1990, the Sensex touched the magical four-digit figure for the first time and closed at 1,001 in the wake of a good monsoon and excellent corporate results.

2000, January 15, 1992

On January 15, 1992, the Sensex crossed the 2,000-mark and closed at 2,020 followed by the liberal economic policy initiatives undertaken by the then finance minister and current Prime Minister Dr Manmohan Singh.

3000, February 29, 1992

On February 29, 1992, the Sensex surged past the 3000 mark in the wake of the market-friendly Budget announced by the then Finance Minister, Dr Manmohan Singh.

4000, March 30, 1992

On March 30, 1992, the Sensex crossed the 4,000-mark and closed at 4,091 on the expectations of a liberal export-import policy. It was then that the Harshad Mehta scam hit the markets and Sensex witnessed unabated selling.

5000, October 8, 1999

On October 8, 1999, the Sensex crossed the 5,000-mark as the BJP-led coalition won the majority in the 13th Lok Sabha election.

6000, February 11, 2000

On February 11, 2000, the infotech boom helped the Sensex to cross the 6,000-mark and hit and all time high of 6,006.

7000, June 20, 2005

On June 20, 2005, the news of the settlement between the Ambani brothers boosted investor sentiments and the scrips of Reliance Group made huge gains. This helped the Sensex crossed 7,000 points for the first time.

8000, September 8, 2005

On September 8, 2005, the Bombay Stock Exchange's benchmark 30-share index -- the Sensex -- crossed the 8000 level following brisk buying by foreign and domestic funds in early trading.

9000, November 28, 2005

The Sensex on November 28, 2005 crossed the magical figure of 9000 to touch 9000.32 points during mid-session at the Bombay Stock Exchange on the back of frantic buying spree by foreign institutional investors and well supported by local operators as well as retail investors.

10,000, February 6, 2006

The Sensex on February 6, 2006 touched 10,003 points during mid-session. The Sensex finally closed above the 10K-mark on February 7, 2006.

11,000, March 21, 2006

The Sensex on March 21, 2006 crossed the magical figure of 11,000 and touched a life-time peak of 11,001 points during mid-session at the Bombay Stock Exchange for the first time. However, it was on March 27, 2006 that the Sensex first closed at over 11,000 points.

12,000, April 20, 2006

The Sensex on April 20, 2006 crossed the 12,000-mark and closed at a peak of 12,040 points for the first time.

13,000, October 30, 2006

The Sensex on October 30, 2006 crossed the magical figure of 13,000 and closed at 13,024.26 points, up 117.45 points or 0.9%. It took 135 days for the Sensex to move from 12,000 to 13,000 and 123 days to move from 12,500 to 13,000.

14,000, December 5, 2006

The Sensex on December 5, 2006 crossed the 14,000-mark to touch 14,028 points. It took 36 days for the Sensex to move from 13,000 to the 14,000 mark.

15,000, July 6, 2007

The Sensex on July 6, 2007 crossed the magical figure of 15,000 to touch 15,005 points in afternoon trade. It took seven months for the Sensex to move from 14,000 to 15,000 points.

16,000, September 19, 2007

The Sensex scaled yet another milestone during early morning trade on September 19, 2007. Within minutes after trading began, the Sensex crossed 16,000, rising by 450 points from the previous close. The 30-share Bombay Stock Exchange's sensitive index took 53 days to reach 16,000 from 15,000. Nifty also touched a new high at 4659, up 113 points.

The Sensex finally ended with its biggest-ever single day gain of 654 points at 16,323. The NSE Nifty gained 186 points to close at 4,732.

17,000, September 26, 2007

The Sensex scaled yet another height during early morning trade on September 26, 2007. Within minutes after trading began, the Sensex crossed the 17,000-mark . Some profit taking towards the end, saw the index slip into red to 16,887 - down 187 points from the day's high. The Sensex ended with a gain of 22 points at 16,921.

18,000, October 09, 2007

The BSE Sensex crossed the 18,000-mark on October 09, 2007. It took just 8 days to cross 18,000 points from the 17,000 mark. The index zoomed to a new all-time intra-day high of 18,327. It finally gained 789 points to close at an all-time high of 18,280. The market set several new records including the biggest single day gain of 789 points at close, as well as the largest intra-day gains of 993 points in absolute term backed by frenzied buying after the news of the UPA and Left meeting on October 22 put an end to the worries of an impending election.

19,000, October 15, 2007

The Sensex crossed the 19,000-mark backed by revival of funds-based buying in blue chip stocks in metal, capital goods and refinery sectors. The index gained the last 1,000 points in just four trading days. The index touched a fresh all-time intra-day high of 19,096, and finally ended with a smart gain of 640 points at 19,059.

that was a delightful perspective on sensex.

Today, market opened with huge gap down and locked in the 10% down circuit in the opening trade. This is on account of proposed restrictions on PN (participatory notes) by the SEBI. Markets have hit down circuit only thrice in its history and the trades have been frozen for an hour.

PNs are offshore derivative instrument which is used by the foreign investors to play the Indian stock markets. Its for those investors, who are not listed with SEBI.

At 9:56 am, Sensex was down 1507 at 17544 and Nifty was down 524 points at 5143. Broad based selling took place in the opening trade and the markets got locked in the down circuit and shut for one hour. Markets will reopen in one hour at 10:55 am.

Mr.KAMAL NATH has told to Reutuers just 10 minutes back.....India will impose ban on Terry Towel imports and Ready Made Fabric..........watch blast in Textile stocks..major benefit to textile industry. hot buzz on ALOK TEXTILES

SEBI announces new P-note policy
M Damodaran, Chairman, Sebi, while addressing the new policy on P-notes said that this is not a board meeting to decide on a single issue. He said the stock exchanges would be mandated to constitute a committee chaired by a non-executive member of a concerned exchange to focus on surveillance. This, he feels, would make the market a safer place for investors.

He was speaking to mediapersons after the Sebi board meet today. The meet also saw new policy announcements like clearing of Sebi's proposal to have an SME exchange.

The regulator also expects significant increase in trading volumes on the corporate bond platform. The board has also decided that FIIs and sub-accounts shall not issue P-Notes as underlying as derivatives.

"All current position to be wound up within 18 months. Further issue of PNs by sub-accounts will be discontinued with immediate effect," Damodaran said.

Highlights of M Damodaran's announcements at the Sebi Press Conference:

- Sebi board cleared proposal to have a separate exchange for SME Segment
- Date of calculation of AUC will be Sept 30
- Sub accounts not to be allowed to issue PNs
- PNs can't be issued with ODIs as underlying
- FIIs shall not issue P-notes as underlying as derivatives has been approved
- Current position to be wound up within 18 months
- Board has decided further issuance of P-notes by sub accounts of FIIs to be discontinued with immediate effect
- Sub accounts issuing P-notes have applied for registration of FIIs: Sebi
Until a final decision is taken on their being FIIs, sub accounts can continue as normal
Both proprietary and corporate sub-accounts will be allowed to do business till final decision is announced.

Excerpts from the meeting:


“One of the issues that Sebi focuses on and is expected to focus on is surveillance. As it is customary in all our board meetings to report on surveillance activities, observations, conclusions, action taken and thereon was placed before the board and during discussions the prospect and the formal decision is been taken based thereon that the stock exchanges will be mandated to constitute a committee of board that will focus on surveillance.


This will be a committee chaired by an independent member, a non-executed member of the board of directors of the concerned exchange. We believe that broad level attention through the focused efforts of specially constituted committee of the board will enhance surveillance and ensure that it is consistent with Sebi’s interest and with the intentions and interest of the market place. The market will become a safer place for investors and that is one of the decisions that the board took today.”

The following transactions done today:
Sold 50 Indiainfoline @ 998.50 and covered at Rs.990
Bought 100 Petronet LNG at 82 with short term target of 90
Bought 100 Power Grid at 138.80 with short term target of 160
Bought 25 Maruti at 1154 for gain under BTST

what might be the effect of these guidelines by SEBI, can any one say??

again market freeze???

Reliance Money recommended WWIL at Rs.53 with a target to Rs.100 within three months time frame.

WWIL plans to pump in Rs 10 billion over 4 years

MUMBAI: Wire & Wireless (India) Ltd, Zee's demerged cable TV distribution company, plans to pump in Rs 10 billion over the next four years in a reworked business strategy after Deepak Chandnani took over as CEO following the exit of Jagjit Kohli.


WWIL had earlier said that it planned to put in Rs 7.14 billion over two years, earmarking Rs 3.28 billion for set-top boxes (STBs), Rs 2.21 billion towards hardware, and Rs 1.14 billion for customer acquisition.

"We have firmed up an investment plan of Rs 10 billion over four years. This will be mainly for acquisitions, capex and cost of acquiring digital customers," Chandnani tells Indiantelevision.com.

WWIL is weighing various fund raising options but has not finalised on any mix of instruments yet. The company's prior plans to raise Rs 4 billion through a qualified institutional placement (QIP) was not cleared by the Securities and Exchange Board of India (Sebi) as it was fresh from listing on the stock exchanges.


WWIL has made some acquisitions including taking a 51 per cent stake in Tisai Satellite, a multi-system operator (MSO) in Kalyan. "We are targeting more such MSOs and independent operators," says Chandnani while refusing to disclose further details.

The valuation of cable networks varies in the region between 12-18 times of ARPU (average revenue per user), industry watchers say. MSOs, however, are willing to pay more premium where they see a strategic fit.

WWIL has an aggressive HITS (headend-in-the-sky) plan and has signed for transponder space on Thaicom satellite. "There is a huge opportunity to take digital to analogue cable. That will be our next big effort," says Chandnani.

WWIL is setting up digital headends in Bangalore, Pune, Ludhiana and Lucknow. "We expect to start our digital operations in these cities by month-end," says Chandnani.

Rely on ratios at your peril

PLENTY of people believe in owning gold as a safeguard against hyperinflation or financial apocalypse. They see the rise in gold to more than $1000 an ounce earlier this year as signalling the debasement of paper money, particularly the dollar.

But what does the price of gold really tell us when measured against other assets? One particular ratio that might be of interest is the relationship between gold and the oil price. In other words, how many barrels of oil does it take to buy an ounce of gold?


According to Capital Economics, if we go back to the early 1980s, it has taken, on average, 16 barrels of oil to buy one ounce. Given that the current ratio is around 7, that suggests either that oil is very expensive or gold is very cheap. Indeed, if you believe in the latter, then gold could be heading above $2000 an ounce.

But should this relationship be constant? After all, most of the gold that has ever been mined is still in existence, but we are using up oil at a tremendous rate—and some believe global production may be at, or close to, its peak. In addition, oil is vital to the global economy; the main industrial use for gold is jewellery. So that suggests oil should be rising relative to gold over time.

David Ranson of Wainwright Economics, a gold enthusiast, reckons oil is rising, relative to bullion, at a trend rate of around 3.5% a year. As a result, the gold/oil ratio should fall over time. Indeed, Capital Economics reckons that the average ratio since 2002 is about 10, rather than the 16 that has pertained over a longer period.

That still indicates, with oil at more than $130 a barrel, that gold could soon cost $1300 an ounce. But, of course, there is nothing to say that the ratio has to be restored by gold rising; oil could be dear rather than gold cheap. A fall in the price of oil to $90-$100 a barrel would redress the balance.

Another relationship worth examining is that between the Dow Jones Industrial Average and the bullion price. If you go back to 1980, when gold briefly reached $850 an ounce, the relationship was around 1. But by 2000—the height of the dotcom boom—it took 40 ounces of gold to buy one "unit" of the stock market. (This requires the fiction of treating the level of the Dow as a dollar price). According to Alan Newman of the Crosscurrents website, the average ratio between the Dow and gold since 1975 has been just under 15. Currently, it's almost bang in line.

Again, one needs to consider whether a fixed ratio is theoretically sound. After all, gold is an unproductive asset, virtually without a yield (it can be lent in the market at a cost). One would expect it to maintain its real value over time. But one would expect the Dow, as a claim on the corporate earnings and dividends of the American economy, to at least keep pace with economic growth over the long run. So one would expect the Dow to rise, relative to gold, over time. A historical average is thus of limited use.

Indeed, that is the problem of using charts in the first place. They can give investors an instant picture of what has happened in the past; academics are very dubious that they have anything to tell us about the future. It is very easy to find spurious statistical correlations. And even when there are sound theoretical reasons why a ratio should revert to the mean over time (such as profits as a proportion of GDP), it can take ages for the shift to occur. It is probably not wise to expect to make your fortune from trading the gold/oil relationship.