The recent roller coaster ups and downs in the stock market have left many with frayed nerves. There has been so much bad news to deal with that any good news is likely to be ignored.
But there is good news. The manic drops in stock prices over the past two days have not brought a systemic payments crisis in their wake. This was not how it usually happened in our markets. Till the mid-1990s, sudden bouts of selling would almost inevitably lead to investor defaults. Trades would not be settled, which often led to further bouts of uncertainty and panic.
It is good to see that the Indian market can now take intra-day dives in its stride. Credit for this has to go to the stock market regulator and the exchanges, which have put in place new risk management systems that are better than those in many other countries. A dropping market is far better than no market at all.