ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Year of the Stock Markets

Year of the Stock Markets THE stock markets continue to present a picture of remarkable strength. Spurred by highly optimistic expectations about the long-term fiscal policy they pushed their way further up during the first half of December 1985, carrying equity price indices to new highs in the upswing which had been in evidence since the beginning of October. While the Financial Express regional index for Bombay established an altogether new high mark on December 10, the other indices moved fairly close to their previous all-time highs recorded early in August. During the latter part of the month, the market beat a modest retreat on bull unloading which was partly in the nature of corrective profit- taking and was induced partly by the announcement of the long-term fiscal policy as it did not fulfil the market's fond expectations. The underlying trading sentiment, however, did not betray any signs of uneasiness. Quotations for some of the popular speculative scrips in kerb deals during the Christmas holidays gave the impression that the stock market was set to scale new highs.

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