Malathy Prabhakaran More than ten years ago Mayya [1977] confirmed that equities did not provide a hedge against inflation. The study period was confined to 1961-73. Capital markets have witnessed several changes in the recent past. Dilution of foreign equity by multinationals under FERA, liberalisation of industrial policy and incentives to NRI investments led to boom during the late seventies and subsequently, (and in particular) during 1985. The stock exchanges all over the country and in particular the Bombay Stock Exchange have been swiftly changing their profile to the new circumstances. Do all these changes also reflect a change in the conclusions of Mayya?
