Mumbai: The year 2004 clocked a spate of records on the bourses as many indices, including the Sensex and the Nifty, soared to the highest levels in the history of Indian capital market and FII inflows too were the largest ever in any single calendar year.

In the election year that it was, the stock market witnessed a blood bath just after the Lok Sabha polls when a coalition was on the horizon on the support of Left parties, triggering fears on the reforms front. However, the market recovered with liberalisers Manmohan Singh and P Chidambaram at the helm.

Majority of counters from specified and non-specified groups too climbed to dizzy heights and some of them reached the lifetime highs at the year-end.

The investors' wealth in all listed companies scaled a new peak at Rs 16,05,653 crore on December 16.

The price rally was totally distinctive from any other in the past as it was generally spread to all sectors whether oil & gas, software or banking.

It could be called the Chidambaram effect for this is the second time that the magic was repeated. First, when the market favourite Finance Minister P Chidambaram presented a dream budget on February 28, 1997 and second, when the stocks rally began after a similar budget on July 8, 2004.

The sole driving force Foreign Institutional Investors (FIIs) have been pouring into Indian bourses without ceasing.

FIIs, who seem to consider Asia's fourth largest economy as their best for 2004, pumped in over $ 8.07 billion (Rs 36,979.70 crore) in the current year till December 15, the highest ever investments in any calendar year, as per figures released by the Securities and Exchange Board of India (SEBI).

The bourses were placed on a concrete base of strong corporate fundamentals and healthy economic conditions with a bright overall outlook that they could shrug off worrying factors such as soaring global crude price and high inflation.

The capital market witnessed another sort of a record when the Sensex recorded historic intra-trade swing of 793 points and a second biggest fall of 564.71 points on May 17.

The BSE barometer touched a low of 4227 following the shock defeat of the NDA (National Democratic Alliance) Government and negative statements on economic reforms by the Congress-led UPA (United Progressive Alliance) partner Left parties.

For first time in the BSE history, the trading was suspended twice on the same day for one hour and again by two hours when Sensex slid by over 10 per cent and five per cent.

The market breached the magical 6000-level twice during the year. First, the Sensex scaled the all-time intra-day peak at 6249.60 on Jan 9, 2004 and a record closing high on January 14 at 6194.11 following the NDA Government's policies on disinvestment in PSUs.

On the second occasion, it crossed that level on November 12 and created new records on day-to-day basis from December beginning. It scaled the historic closing peak at 6420.38 and intra-trade record highs of 6437 on Dec 16, 2004 before strong resistance pulled it down to 6346.48 at close on December 17.

Increasing exports, burgeoning Forex reserve, strongest growth in industrial output, declining global crude oil prices from all-time high of $ 55.67 a barrel in Oct to nearly $ 42 per barrel at mid-Dec & some positive steps by UPA (United Progressive Alliance) Govt also contributed to the upbeat mood.