From 85,978 to 73,137 and Back Near 84,000 – That’s How Markets Breathe
In September 2024, the Sensex reached an all-time high of 85,978, riding on strong investor optimism, domestic growth momentum, and global tailwinds. But just a few months later, markets took a sharp turn. By early 2025, the index had fallen to around 73,137, a drop of over 14.93%
Now, as of mid-2025, we’re once again seeing the Sensex climb back up—hovering close to 84,000. For investors, this dramatic swing is a powerful reminder that this is how markets behave. They rise, correct, consolidate, and rise again.
Understanding the Market’s Movement
Stock markets are not meant to rise in a straight line. They react to news, adjust to changing economic & geopolitical conditions, and reflect both fear and optimism. The recent cycle—rally, correction, and recovery—perfectly illustrates this pattern.
- The High (September 2024):
Strong earnings, global optimism, and robust domestic consumption pushed the markets to record highs. - The Fall (Late 2024 to Early 2025):
Concerns over inflation, geopolitical uncertainties, foreign fund outflows, and moderate earnings led to a broad-based sell-off. - The Comeback (Mid-2025):
As economic indicators stabilized and confidence returned, markets gradually regained momentum.
Why This Is Normal
Corrections are not crashes. A 10–20% decline may seem alarming, but it’s often a healthy adjustment that sets the stage for long-term growth. The key is to view market behavior through a long-term lens, rather than reacting emotionally to short-term swings.
This cycle has been especially instructive. Those who stayed invested and didn’t panic during the dip are now seeing their patience rewarded. Investors who continued their SIPs, or even invested more during the lows, have benefited from the rebound.
The Power of Staying Invested
One of the most valuable lessons from this market cycle is that staying invested works. The long-term nature of equity markets rewards patience. If you had exited in panic when the Sensex fell to 64,000, you would have locked in losses. But those who remained invested—or better yet, added to their portfolios during the downturn—are now seeing the benefit of that decision as the market climbs again. Over time, these disciplined actions can result in compounded returns that significantly outperform those who try to time the market.
What Should You Do?
- Don’t Panic During Corrections
They are temporary and part of the natural market cycle. - Focus on Your Financial Goals
Whether it’s retirement, buying a home, or children’s education, stay focused on your objectives—not daily market moves. - Stick to a Disciplined Strategy
Continue investing regularly. SIPs help average out the cost of investments over time. - Diversify Your Portfolio
Don’t put all your money in one sector or asset class. A well-balanced portfolio helps you weather market volatility. - Review, Don’t React
Periodically review your investments. Adjust based on goals and life changes, not market noise.
Final Thoughts
The Sensex’s journey from 85,978 → 73,137→ 84,000 teaches us one important lesson: markets breathe. They inhale and exhale. And just like our own breath, this movement is a sign of life, not a cause for panic.
By staying informed, disciplined, and focused on long-term goals, you don’t just survive the market’s ups and downs—you grow with them. After all, in investing, it’s not about timing the market; it’s about time in the market.