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  • Stock Returns and Volatility

Stock Returns and Volatility

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INTRODUCTION 1.0 INDIAN STOCK MARKET Before liberalization, the Indian economy was tightly controlled and protected by a number of measures like licensing system, high tariffs, and rates, and limited investment in core sectors only. During 1980s, the growth of the economy was highly unsustainable because of its dependence on borrowings to correct the current account deficit. To reduce the imbalances, the government of India introduced the economic policy in 1991 to implement structural reforms. The financial sector at that time was much unstructured and its scope was limited only to bonds, equity, insurance, commodity markets, and mutual and pension funds.
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