That was the question my friend asked me yesterday. If you have been following the Stock Market, you would know what it meant. Sensex, the BSE Index hit 10,000 yesterday. Other than it being a magic figure, it doesn't have much significance. Because, even at this level the P/E ratio of the Sensex is around 21.9 which is far lower than what it was during Harshad Mehta scams (40) or KP scams (100).
There are a few Sensex stocks that trade at cheap P/Es - SBI at Rs.870.00 (P/E of 10), NTPC at Rs. 119.00 (P/E of 16), Hindalco at Rs. 170.00 (P/E of 15) - but most of the Sensex stocks are trading at very high P/Es. My view is that the real growth will happen in second line stocks.
Sensex from 1000 to 10000