Connection of stock market with real economy seems to be decreasing with time, and it’s paradoxical

The Indian stock market increasingly disconnects from the real economy. This divergence is evident in historical market booms. Liquidity and global factors, not real economic growth, drive some rallies. The Rate Bull from 2003-2008 was an exception, linked to interest rate cuts and economic expansion. The recent SIP Bull shows a worrying disconnect, especially during the pandemic.

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