Indian stock market history: How the SIP became popular and democratised finance

In 2019, the BJP returned to power for a second consecutive term with an enhanced parliamentary majority, aided in large part by a wave of jingoistic sentiment generated by air strikes against Pakistan that were launched in retaliation for a bombing that killed 40 Indian paramilitary personnel. The party’s return to power introduced a new political dynamic to economic events. It remains unclear whether the electorate gave the BJP a second majority – albeit with only 37% of the popular vote – to pursue its “development for all” agenda, or for something else.

But that did not matter, for emboldened by the second victory and a wave of adulatory media coverage, the BJP went ahead with implementing its right-wing manifesto. In doing so, it expended large amounts of political capital on its cultural and religious nationalism agenda, which left less to spend on substantive economic and financial issues. This, in turn, raised social, cultural, and religious tension to the point where some thought it would start affecting economic growth and commercial activity.

But the stock market kept rising through all this turbulence and turmoil. After roaring back in 2009, the market stayed high and, for the next 10 years, kept edging upward into...

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