Instability in Indian Stock Market in the Backdrop of Economic Reforms: A Conceptual Study
DOI:
https://doi.org/10.33516/maj.v56i9.82-87pKeywords:
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Stock market is an integral part of financial markets and a constituent of financial system. Performance of the stock market is a barometer of economic growth. A stable market with less volatility is expected to perform better in the short run. However, in the long run, a stable market may turn into a stagnant one since possibilities of speculation would reduce in such market. Out of several reasons that may cause instability in the market, economic openness is the most crucial one. In this backdrop, the paper is an attempt to set a theoretical underpinning on financial system and financial market from global and Indian point of view with special reference to the stock market operations in the country. The paper also delves into the reasons and possible solutions of stock market instability in the backdrop of economic interdependencies among countries.Downloads
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