Finally Indian Stock Market crossed 20000

Today, Indian stock market crossed 20000 Mark on Bombay Stock Exchange (BSE) and closed at 20001. Nifty also crossed 6000 level for first time and closed at 6009. It took around 32 months for Indian stock market to again reach these levels. More than two years back on January 2008 Indian stock market achieved highest levels of 21206 ever reached back in past by BSE. However, soon Indian stock market started moving down and we saw many bottom points over year time.

The main reason of this downward fall was recession in world and India. In 2009, Indian stock market again started showing signs of recovery as we saw recovery of world markets from recession. In last few months, we saw good results from all major industries in India which increased confidence of foreign investors on India. Also this year, we saw good monsoons and more than 8% GDP growth in India which made Indian stock markets favourites for investment. I predicted this growth in Indian stock market few days back, read here-Does stock market is going to touch 20000 mark again?.

Overall this sharp growth in Indian stock market is due to FIIs as they have invested more than 15 thousand crore rupees in Indian stock market in recent times whereas small and retailer investors are entering stock market with caution only. Therefore, this is not a strong and sustainable growth in Indian stock market unless small and retail investors start showing interest in Indian stock market. This upward trend in Indian stock market is likely to continue for some more time till we see some profit booking by FIIs. Small investors should go with caution while investing in stock market and should not get carried away by big jumps in Stock market.

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