29 October 2021
Talk Back
Making Sense Of The Market Leap
The stock market in India hardly follows the international market when it comes to factors influencing a bull run. For example, the reporter mentions low inflation across the globe as a reason for global stock performance. But in India, the inflation index has remained high. Also, the RBI doesn’t change interest rates too frequently considering the rising inflation. In fact, the central bank has recently decided to keep the interest rates fixed for the time being.
The author also mentioned strong corporate performance, even during the Covid period, as a reason behind the bull run. This assumption is not correct. Considering the shrinking GDP, it is hardly conceivable that industries are having a party. Moreover, jobs are gone and salaries have shrunk, demand for goods is less, and corporates are booking profit by reducing expenses, not by increasing...