Slump in Securities Market-Problems and Strategies for Its Sustainable Growth

Problems and Strategies for Its Sustainable Growth Basudev Mohanty In comparison to the summer of 1992, the winter of 1996 did not bear the symptoms of a significant downturn in economic growth, nor was there any threat of Balance of Payment crisis of 1992. Yet the stock market now bear a picture gloomier than in 1992. The real differences between the conditions in 1992 and those in 1996 lie in the long-term factors of capital market growth. Viewed from this perspective, there are compelling reasons to believe that the emergence of certain adverse systemic factors have much to say about the recent slump than the macro-economic paradigms.