Indian stock market’s discord with the real economy

The Covid-19 pandemic has created economic conditions that are keeping the stock markets high in India. However, analysing historical trends and current data together, Simtiha Ishaq Mir and Younis Ahmed Ghulam warn that the stock market is out of sync with the real state of the economy and that the government needs to take urgent steps to avoid an uncontrolled and catastrophic bursting of this bubble. The downslide in the markets as the SENSEX lost 1500 points this morning suggests their warning is both timely and serious.