Many economists are stunned by the sudden stock market rally that is evident in the Indian stock markets since the markets crashed in March last year. Nifty and Sensex both crashed to their lowest levels since 2016. The Sensex crashed by a whopping 3,934 points while the Nifty plunged by 1,1135 points.
However, since then the benchmark indices have both more than made up for the crash. Many investors and market observers are stunned by such a dramatic recovery despite the real economy being in dire straits. What explains the crash and the sudden rallies in the markets?
There are three reasons that economists and market experts are citing as an explanation for the sudden rise of the benchmark indices during a pandemic.
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