It took 33 trading days for the Sensex to rise from 10,941 on March 20 to its closing peak of 12,612 on May 10. But in just seven trading days, the Sensex returned to 10,939, falling 826 points on May 18 and 453 points yesterday. We all knew this linear trend had to reverse some time in a market that has jumped four-fold since 2003, doubling in the past 12 months alone and delivering 60 per cent compounded average annual returns over the past three years. But the last two days’ 10.5 per cent fall has been unexpected. To put that in perspective, this 1,279 point Thursday-Friday fall was the value of the Sensex 16 years ago (on September 10, 1990 the Sensex stood at 1,283).
Opinion in The Indian Express, May 20, 2006