Stock market cycles drop by at the art market too

KOLKATA: Though in a more subtle way, the art market has also seen its cycles just like the stockmarket. For instance, the first flush of art buying at auctions, which triggered price rises, really happened between 1995 and ’00. From ’00-02, the art market is known to have stagnated and price movements were at a low ebb.

The tempo began picking up again after that from ’03 with prices spurting in the last two years since the last quarter of ’04.

Of late, prices of quite a few of the high-end artists are showing signs of consolidating at the latest auctions, while the middle tier of artists are tracing the upward graph. This could indicate thin movements among top level artists at least in the short term.

“Auctions between 1995 and ’00 found the breadth of the art market expanding for the first time. Prices of artworks also climbed. During this phase, the major performers in terms of price appreciation embrace Hemen Mazumdar, Ganesh Pyne, MF Husain, Tyeb Mehta, SH Raza and VS Gaitonde. From ’00 to ’02, prices remained static and sales dropped.

This was like a downward trend in the stockmarket,” an art market source told ET. There is a difference, of course, between the 1995 and ’00 cycle and the one which began from ’03. In the initial phase, art prices were in lower brackets and the scope of price growth was immense.

In contrast, with prices of Indian art having gone up fantastically in recent times, the elasticity of appreciation may be that much reduced. “Since art has become an investible commodity, an investor could always look at encashing his or her at a rewarding price. An art fund or funds could also enter the market to book a part of the profits. This will naturally impact the business cycle as in any trade situation. Sometimes, if sellers fail to achieve the tags they are targeting, then prices could seek lower levels. These are all scenarios which could surface in a bull market,” sources said.

Art cycles also hinge on the shifting tastes buyers. An artist or group of artists in demand in one cycle may not catch the fancy of collectors and buyers in another cycle. A classic example is that Bengal art was picked up with fervour at the auctions in the 1995-2000 period of the price rise. That changed completely in the second cycle when the Progressive group shot into the limelight.

Besides, the younger generation of artists, or the contemporary ones as they are labelled, are already making their presence felt in both domestic and international auctions and posing a challenge to the more established names. This may gradually fuel yet another cycle in the future.