Markets

India's first stock market bubble (1863-1865) was caused by events in America

The first bubble on the BSE dates back to 1863 when the American Civil War began. The conflict choked the supply of American cotton, and importers turned to India. This caused a massive boom in cotton and related stocks, and the commodity was nicknamed "White Gold". The bubble enriched traders beyond their wildest dream, and stocks across the board joined the rally.

However, the bubble met with a familiar end - the end of the Civil War brought about a massive crash, and with it a swathe of bankruptcies.