2000-2010: The journey of Sensex from 6K to 20K in 11 yrs

6000, February 11, 2000 - On February 11, 2000, the information technology boom helped the Sensex to cross the 6,000-mark and hit and all time high of 6,006.

7000, June 21, 2005 - On June 20, 2005, the news of the settlement between the Ambani brothers boosted investor sentiments and the scrips of RIL, Reliance Energy, Reliance Capital and IPCL made huge gains. This helped the Sensex crossed 7,000 points for the first time.

8000, September 8, 2005 - On September 8, 2005, the Bombay Stock Exchange's benchmark 30-share index – the Sensex - crossed the 8000 level following brisk buying by foreign and domestic funds in early trading.

9000, December 9, 2005 - The Sensex on November 28, 2005 crossed 9000 to touch 9000.32 points during mid-session at the Bombay Stock Exchange on the back of frantic buying spree by foreign institutional investors and well supported by local operators as well as retail investors.

10,000, February 7, 2006 - The Sensex on February 6, 2006 touched 10,003 points during mid-session. The Sensex finally closed above the 10,000-mark on February 7, 2006.

11,000, March 27, 2006 - The Sensex on March 21, 2006 crossed 11,000 and touched a peak of 11,001 points during mid-session at the Bombay Stock Exchange for the first time. However, it was on March 27, 2006 that the Sensex first closed at over 11,000 points.

12,000, April 20, 2006 - The Sensex on April 20, 2006 crossed 12,000 and touched a peak of 12,004 points during mid-session at the Bombay Stock Exchange for the first time.

13,000, October 30, 2006 - The Sensex on October 30, 2006 crossed 13,000 for the first time. It touched a peak of 13,039.36 and finally closed at 13,024.26.

14000, December 5, 2006 - The Sensex on December 5, 2006 crossed 14,000.

15,000, July 6, 2007 - The Sensex on July 6, 2007 crossed 15,000 mark.

16,000, September 19, 2007 - The Sensex on September 19, 2007 crossed the 16,000 mark.

17,000, September 26, 2007 - The Sensex on September 26, 2007 crossed the 17,000 mark for the first time.

18,000, October 9, 2007 - The Sensex on October 9, 2007 crossed the 18,000 mark for the first time.

19,000, October 15, 2007 - The Sensex on October 15, 2007 crossed the 19,000 mark for the first time.

20,000, October 29, 2007 - The Sensex on October 29, 2007 crossed the 20,000 mark for the first time.

21,000, Jan 08, 2008 - The Sensex on January 8, 2008 touched all time peak of 21078 before closing at 20873.

Book Value and Price to Book Ratio

Book value is based on historical costs, not current values, but can provide an important measure of the relative value of a company over time.

Book value can be figured as assets minus liabilities, or assets minus liabilities and intangible items such as goodwill; either way, the figure that results is the company's net book value.  

You can also compare a company's market price to its book value(P/B) on a per-share basis. Divide book value by the number of shares outstanding to get book value per share and compare the result to the current stock price to help determine if the company's stock is fairly valued. Most stocks trade above book value because investors believe that the company will grow and the value of its shares will, too. When book value per share is higher than the current share price, a company's stock may be undervalued and a bargain to investors. In fact, the company itself may be a bargain, and hence a takeover target.

Current Ratio

Current assets divided by current liabilities yields the current ratio, a measure of a company's liquidity, or its ability to meet current debts.

The higher the ratio, the greater the liquidity.

As a rule of thumb, a healthy company's current ratio is 2 to 1 or greater.

Debt to Equity Ratio

Debt-to-equity ratio provides a measure of a company's debt level. It is calculated by dividing total liabilities by shareholders' equity.

A ratio of 1 to 2 or lower indicates that a company has relatively little debt. Ratios vary, however, depending on a company's size and its industry, so compare a company's financial ratios with those of its industry peers before drawing conclusions.