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

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Capital Market Myths

stability to the stock exchange operations. Capital Market Myths The stock market is it. an expectant mood. THE stock market scene has undergone a profound change. Misgivings that had arisen in the wake of the sudden shifting of V P Singh from the finance ministry to the defence have disappeared. There is also no trace of anxiety normally associated with the proximity of the union budget. The market has not only recovered fully from the crash of December last but equity price indices have moved fairly close to their last year's all-time highs. The Economic Times index for Bombay, in fact, established an altogether new high on February 13 and the all-India index stood only marginally below its 1986 peak. The Financial Express indices, however, presented a somewhat different picture in that the Bombay index has still to rise by about 5.6 per cent and the all-India index by 9.3 per cent to reach their all-time highs recorded about the middle of February 1986. The Bombay stock exchange sensitive index also has still a long way to go to reach its previous best mark made in June last. Considering that the Bombay stock exchange sensitive index is about 13.8 per cent below its all-time high recorded in June last, the rise in the Economic Times index to a new all-time high appears rather surprising. Interestingly enough, the Economic Times index for Calcutta had made a new all-time high mark on January 5 which contrasted rather sharply with the index compiled by the Financial Express and the Reserve Bank of India.

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