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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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