Abstract
The capital market plays the role of intermediary where funds can be borrowed and lent for long term time horizon or alternatively it can be said that capital market is a mechanism where market forces such as demand and supply for long term fund interact with each other. Indian equity capital market is undergoing through a strong bullish phase and the Sensitivity Index of Mumbai Stock Exchange has crossed 27000 points in the first week of September, 2014 which is its lifetime high. In order to identify the causes for sudden sustained upsurge of the equity market, the background story should be analysed properly.
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