In real terms, Sensex still below 2007 levels
While the Sensex numbers show 85% growth since January 2007, returns are much lower in real terms
The euphoria surrounding the new peaks that the benchmark Sensex is hitting daily is misplaced. While the index numbers show 85% growth since January 2007, returns are much lower in real terms. When the Sensex is adjusted for consumer price inflation (using the Consumer Price Index for industrial workers), its value is lower than what it was in January 2007. Putting it differently, ₹ 100 invested in the Sensex yields ₹ 185 on date. However, because of rising inflation, the purchasing power of that invested amount is only ₹ 94.
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