Indian stock market is poor indicator of real growth
The stock market has broken new records since 2011 even though the growth is lacklustre
You must be signed in to read this analysis
In this article
- Three phases of market-growth relationship
- Pre-1990: Non-existent relationship
- 1990-2010: Strong relationship
- 2011 onwards: Weak relationship
- 1990-2003: Fortuitous link
- Fiscal consolidation
- Supply-side constraints
- Monetary policy risk
- Reason for fortuitous link
- 2003-11: Strong association
- Retail
- Infrastructure
- Post-2011 decoupling
- Slowing growth
- Stock market euphoria
- 2015 onwards
What is this?
This article is from the Oxford Analytica Daily Brief, which analyses geopolitical, economic, social, business and industrial developments on a global and regional basis, providing clients with timely, authoritative analysis every business day of the year. Find out more about the Oxford Analytica Daily Brief, or request a trial.
_350.jpg "The Bombay Stock Exchange building in Mumbai (Reuters/Danish Siddiqui)")