For the purpose of describing the elements, the persisting nature of the market bubble must be explained with a rationale to the advancement of the technology and the systems of the finance. It becomes very much tough to distinguish the bubble with considering the form of the ordinary market fluctuations. The primary market or the economic factors are taken into consideration for the purpose of separating the factor. With considering the years from the 1970s to the 1990s, the sudden rise and the fall of the “nifty 50” are seen in the stock market which is indicated to be a huge reason for the cause of the market bubble. The subsequent fall of the share prices was mentioned in the years 1974 to 1975, and it was caused due to the specific changes in the macroeconomic conditions. Henceforth, a large part of the market decline is indicated to be rationally linked with the sharp rise in the global price of the oil and this slows down the global economy with leading the bubble burst.
Similarly, it is indicated with the overvaluation of the prices that increases the interest rates. The characterization is being made by the collapse of the market bubble which is indicated to be linked with the market and the economic conditions. The bubble appears to be dependent on the measurement valuations and the changes in the prices, and it is indicated that the equity market might be included in the years 1970’s and 1987. Hence, the market bubbles are indicated as a major role which is present in the financial system.