In one of the most remarkable stories of wealth creation in modern markets, the BSE Sensex has grown from a base value of 100 in April 1979 to 80,000 in 2025 — a staggering 798-fold rise that has doubled investors’ wealth roughly every five years.
For investors who believed in its long-term potential, the results have been extraordinary. A modest investment of ₹10,000 in Sensex stocks at inception would today be worth nearly ₹80 lakh, underscoring the power of compounding over 46 years.
Weathering Crises, Breaking Records
The Sensex’s journey has been punctuated by dramatic highs and lows. It touched a lifetime high of 85,978.25 in 2024, but its resilience is best seen in how it has rebounded from crises.
- Global Financial Crisis (2008): The index fell from 21,206.77 to 7,697.39, only to recover to 17,530.84 within a year.
- COVID-19 Crash (2020): From 41,952 in January 2020, it plunged to 25,638.90 in March as panic swept global markets. But this became a turning point — the index surged to 47,751 by year-end and has climbed to 79,857.79 in 2025, delivering a 211% return from its pandemic low. Every ₹1 lakh invested at the COVID bottom is now worth ₹3.11 lakh.
The data reflects a clear pattern: every major correction has laid the groundwork for the next phase of growth.
Capturing India’s Economic Evolution
Through economic liberalisation in the 1990s, the IT boom of the 2000s, the infrastructure push of the 2010s, and the digital transformation of the 2020s, the Sensex has mirrored India’s growth story. From its low of 7,697 in 2008 to nearly 86,000 in 2024, the index has shown that patient participation in the market beats attempts to time it.
The Road Ahead: 1 Lakh and Beyond
Market watchers are now eyeing the next big milestone — the 1 lakh mark. Global brokerage Morgan Stanley sees a 30% chance of this happening within the next 12 months.
According to market projections based on the index’s historical compound annual growth rate (CAGR) of around 15%, the Sensex could reach 1.5 lakh by 2030 and 3 lakh by 2035 if past trends continue, effectively doubling every five years on average.
India’s Economic Momentum
As the world’s fourth-largest economy, India is projected to reach a GDP of $7.3 trillion by 2030, becoming the third-largest globally. If history is a guide, the Sensex will continue to scale new peaks alongside the nation’s economic rise, offering future generations of investors the same opportunities it has rewarded for decades.
(Disclaimer: Views and projections mentioned are those of market experts and do not represent the views of Capital Mirror.)