If Indian stock market rises what will be the impact on India's GDP?
Answers
Answer:
Markets are at dizzy highs despite gloomy economic data. And things may get worse before they get any better
Market watchers note that one of the best times to invest is when GDP growth is low. However, at current levels, India is still the most expensive among peers. This makes investing a risky bet
Explanation:
Despite all the depressing news about the economy in the media, and a plethora of gloom-and-doom forwards on WhatsApp, the markets are at all-time highs. BSE’s Sensex touched the 41,000 mark for the first time ever on Tuesday and National Stock Exchange’s Nifty index surpassed the 12,100 mark, at a time when prime economic indicators and some high-frequency data are at loggerheads with the market’s euphoria.
It’s almost as if a section of the markets doesn’t give two hoots about the dismal economic data. It makes everything look hunky-dory, when it actually isn’t. “The Indian stock market is already factoring in reasonable recovery in the economy and earnings," analysts at Kotak Institutional Equities explained in a note to clients. Analysts at Jefferies India Pvt. Ltd echoed this view: “India’s equity markets appear sanguine that the worst has passed."
Simply put, the markets are up purely on the hope of a better future. And this dissonance between the markets and economic numbers naturally causes confusion in the minds of observers.
It’s another matter that there is nothing on the ground to support the optimism. Jefferies India, for instance, points out that its economic activity index slipped to a 15-year low in September. The broker’s Activity Index is based on 36 indicators including credit growth, automobile sales and electricity demand.
HOPE THIS INFORMATION WILL HELPS U MATE ✌️
MARK ME BRAINLIEST ❤️ AND FOLLOW ME ⤵️⤵️