Survival of the Friendliest: The Battle That Shaped India’s Equity Culture
On a sweltering summer morning in Mumbai, on 30 April 1982, Dalal Street stood on the brink of chaos. Traders wiped sweat from their brows, not merely from the oppressive heat but from a growing sense of unease. What was expected to be a routine settlement day soon spiraled into one of the most dramatic episodes in the history of Indian financial markets. Within hours, a fierce battle between a powerful bear cartel and a rising industrialist would bring the stock exchange to a standstill, shaking the foundations of the system and leaving behind a legacy that continues to define India’s investing culture. To understand the significance of that moment, it is necessary to step back and examine the evolution of the Indian stock market itself. The roots of organized trading in India can be traced back to the late eighteenth century, when securities linked to colonial enterprises were exchanged informally. By the nineteenth century, trading activity had expanded in Bombay (now Mumbai), parti...