BANGALORE: If you're looking for a stock market index that will likely show massive improvements throughout the year 2015, look no further than the Bombay 30 (SENSEX). The Bombay 30 is considered the primary performance gauge for companies in India; and it did incredibly well in the last fiscal year. Perhaps more importantly, the index looks like it will outperform many others this year as well. Today, we'll talk about the massive growth we saw in the Bombay 30 over the past fiscal year, dial down why the growth is happening, and chat about what we can expect to see throughout the rest of 2015.

What We Saw From the Bombay 30 over the Past Fiscal Year

The last fiscal year 2014-15 is considered by many to be the year of equities. The reality is that throughout the year, equities around the world grew at an astronomical rate. However, there are few stock market indices that saw the growth that the Bombay 30 did. In the year 1 in every 4 of the top 200 companies on the Bombay Stock Exchanged doubled in value; with nearly half of those listed on the Bombay 30 doubling! Some even saw share price growth between 200 percent and 300 percent. That is absolutely massive!

Why the Growth Happened

Most experts attribute the growth to what's being called the Modi factor. This term is used to describe an independent analyst in Mumbai, AK Prabhakar's opinion on the reason for the rally. According to Prabhakar...

“The market has rewarded the consistent performers. Companies that have been delivering over a period of time have borne the fruits of their work.”

Essentially, the Modi factor puts quality first; stating the companies that consistently produce quality products and services will have no choice, but to increase in value.