India marks its 80th Independence Day as the stock market reflects its own long-term progress. The Sensex has gained about 8,500 percent in under 35 years following the major economic reforms of 1991. Launched in 1986, the index traded below 1,000 during a severe balance-of-payments crisis that threatened national solvency. The finance minister at the time noted that foreign reserves covered only two weeks of imports. In July 1991, the government introduced a landmark budget that dismantled the license system and promoted globalization, privatization and liberalization. The Sensex rose nearly 5 percent on budget day and posted an 82 percent gain for the year, closing at 1,909. Further gains followed in early 1992, with the index climbing 94 percent before the first budget of that year. It crossed 4,000 in March 1992 but fell sharply in April after a major market scandal emerged. Subsequent policy changes supported economic expansion and market growth. The Sensex surpassed 86,000 in December last year, representing an annualized return of roughly 14 percent since 1991. It has posted gains in 30 of the past 40 years. In 2024 the index passed 75,000, 80,000 and 85,000. From 2014 to 2025 it advanced from 25,000 to 86,000. After reaching a record above 86,000, the index has eased about 10 percent and now trades below 78,000 amid global uncertainties. Analysts remain positive on longer-term prospects, citing solid corporate earnings. Market observers note that India’s market capitalization has grown at nearly 14 percent annually in dollar terms over two decades, outpacing the United States. They describe the market as offering repeated opportunities for substantial returns through compounding and structural trends.
