IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/1778.html
   My bibliography  Save this paper

Shadows of economic prosperity in india in retrospection of the capital market

Author

Listed:
  • Lahiri, Soumitra

Abstract

Indian share market has never been like this. Market indexes have appreciated in an unprecedented manner since June 2006 and are creating new records of attaining altitudes that were beyond dreams a couple of years back. Media and Government never give up the opportunity of going gala over new laurels of economic prosperity being achieved by the nation. Even amidst such overall positivism question arises as to whether the achievements being flaunted about are truly real or not. The value of Indian currency (Rs) has been gaining on value against hard currencies like US Dollar etc since mid 2002 and the Indian capital market experienced true upheaval from 2003 onwards. Furthermore, Internet trading and thereafter derivative trading was introduced by Government of India during the year 2000 when since investments from foreign institutional investors started pouring in. Therefore, besides the economic prosperity or irrespective of economic prosperity, an investment boom could happen since exchange rate decline was rendering extra income/capital appreciation for foreign institutional investors. The article describes as to how investments from foreign investors have influenced mania in Indian share market and consequently driven the country on the verge of bankruptcy and/or virtual financial crash that may happen any ti

Suggested Citation

  • Lahiri, Soumitra, 2007. "Shadows of economic prosperity in india in retrospection of the capital market," MPRA Paper 1778, University Library of Munich, Germany, revised 13 Feb 2007.
  • Handle: RePEc:pra:mprapa:1778
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/1778/1/MPRA_paper_1778.pdf
    File Function: original version
    Download Restriction: no

    More about this item

    Keywords

    Globalization; decontrolling of economy; investments; foreign institutional investors; market index; India; Indian capital market;

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:1778. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter) or (Rebekah McClure). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.