Review of trends in Indian primary securities market post global financial crisis of 2008
Year 2008-09 saw the world’s worst financial crisis of the 21st century. The failure of Lehman Brothers, a giant global bank, in September 2008, almost brought down the world’s financial system. The effects of this international financial crisis were also felt in the Asian financial markets. Even Indian securities markets showed downward trend and increased volatility in that year. There was a downswing in the domestic equity markets which was in tune with the downward swing in global equity markets due to the international financial crisis. We witnessed a sharp fall in the benchmark indices, a general fall in share prices of all stocks, fall in market capitalization and turnover. The whole of 2008-09 saw an ever increasing volatility in the stock market. As a result of this mayhem, there was a sharp fall in the resource mobilization by companies in the primary market. In fact this year saw more of redemptions as against resource mobilization by the mutual funds. This downward movement got its strength from concerns of increasing recession in the developed countries, falling domestic industrial growth and exports, increased selling by FIIs, poor corporate results and falling Indian currency. Despite of all this, Indian securities market could stand its ground and continue to function properly. Since then it’s been almost a decade and the Indian capital market has made many advancements and as a result it has increased in magnitude and significance. This research article endeavors to trace movements in the Indian securities market from 2008-09 to 2017-18. The focus areas would be the primary securities market with emphasis only on equity market and the resource mobilization in this segment over the study period. This would help in understanding the growth and development in the Indian securities market post the international financial crisis. For this purpose, the annual reports of SEBI for the study period have been downloaded and made as base to give a year-wise account.