Bull and Bear Markets
- A bull market is a period when prices generally trend upward over a sustained time, driven by optimism, growth, and confidence
- A bear market is a period when prices generally trend downward over a sustained time, driven by fear, poor economic conditions, or crisis
These cycles have repeated throughout Indian market history, and understanding past cycles helps build realistic expectations for the future.
The Harshad Mehta Scam (1992)
In 1992, a stockbroker named Harshad Mehta was found to have exploited loopholes in the banking system to divert enormous funds into the stock market, artificially driving prices up over time. When the fraud was exposed, the market crashed sharply, and many investors suffered heavy losses. This scandal was a major reason India strengthened market regulation, and it played a role in SEBI being given stronger statutory powers, and in the eventual creation of NSE as a more transparent, technology-driven exchange.