Economic Reforms and Its Impact on the Indian Stock Market

The reform process in India was initiated with the aim of accelerating the pace of economic growth and eradication of poverty. These reforms were imperative for increasing the efficiency of resource mobilization, allocation in the real economy and for the overall macroeconomic stability. The process started in July 1991 when the Government signaled a systemic shift to a more open economy with greater reliance upon market forces, a larger role for the private sector including foreign investment, and a restructuring of the role of government. This paper studies the impact of economic reforms on the Indian stock market