Historic week for the markets as the Sensex tops 10000

11 February 2006

Market participants will always remember February 6, 2006, as the day on which the BSE Sensex finally crossed the 10000 mark. Dalal Street celebrated the event with gusto and the media ran headlines. But not many had expected it to happen this soon.

The indices had shown some weakness at higher levels during the last couple of days of the previous week. Many traders took this as a sign of the markets coming under a spell of correction before budget expectations take over during the second half of the month.

All this was forgotten in a determined rally on Monday as the Sensex finally crossed the level before retreating marginally in late afternoon trades. The Nifty also went very close to its previous highs on that day. Both indices closed with gains of around 2 per cent each.

Then again, most thought it would be a while before the index would cross the level again. They were proved wrong on Tuesday as the Sensex managed to close above the 10000 mark for the first time.

Wednesday saw some correction after all the euphoria of the first two days. Even on that day, the indices managed to pull back considerably from early lows.