The last few years of the twentieth century witnessed significant
developments in information and communication technology taking the form
of an e-revolution that is transforming the global economy from a
low-productive, manufacture-based old one to a knowledge-based,
highly-productive, new economy with significant growth potential coming
from irreversible advancement in knowledge. With e-revolution, the
new-economy sector is adding significant values to Indian stock market.
This book inquires whether the underlying economic fundamentals could
justify the stock market valuations of the sector. Moreover, it explores
whether new-economy stock price movements show similar patterns
irrespective of the level of financial development and the factors
explaining such movements. It finds new-economy stocks to have
bubble-determined prices and to possess a special character holding
across countries. With functional instability embedded in the stock
market, this is perhaps the initiation of a new era of changed stock
price behavior at least for the new-economy stocks that the standard
pricing models cannot explain. This analysis would be of interest to
researchers and academicians.